The Australian Dollar to GB Pound exchange rates have seen some changes in the past few weeks.
Once again the debate raged as to whether the Reserve Bank of Australia would cut interest rates by 0.25% or 0.5% at their 5th of June meeting, following May’s 50 basis point cut. They actually cut rates by 0.25% to 3.5% which is the lowest levels since the height of the financial crisis.
The ensuing minutes from the meeting, suggested that the decision to cut rates further was finely balanced, as the economic news in Australia had been mixed but the deterioration of the situation in Europe warranted further action.
The RBA suggested “they expect the impact of the recent rate cuts to begin filtering through to the wider economy in the coming months” (it is commonly accepted that any adjustment to interest rates takes approx 18 months to have an impact on the wider economy). […]