Original article by Patrick Commins
The Australian Financial Review – Page: 30 : 28-Sep-18

The divergence between official interest rates in Australian and the US has widened to its highest level since the Reserve Bank adopted inflation targeting in the 1990s. The Federal Reserve’s 25 basis point increase in the cash rate is its eighth rate rise in less than three years, while the Reserve Bank has left rates on hold since August 2016. Bloomberg expects another two US rate rises in the next year, while Australian rates could well remain on hold. Economists say a further widening of the interest rate differential could put downward pressure on the Australian dollar.

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