8 days ago
Western Investor
The bank’s target overnight or policy rate now stands at 4.5 per cent, 18 times what it was a year ago. “Governing Council expects to hold the policy rate at its current level while it assesses the impact of the cumulative interest rate increases,” the bank said. “If the interest rate increases stabilize it’s a positive for the market, because the cost of capital is known versus moving. Your enemy is rapidly rising interest rates,” he said, hoping at the time for a short, sharp hike followed by a pause to assess its impacts. “With the increased sensitivity to higher interest rates, that might be enough.
Continue reading...
