Rate rise enlivens world markets

Posted on 8/10/2009  

The Reserve Bank's interest rate rise has been received around the world as a major positive for the Australian economy. It has reportedly sparked a rally on world sharemarkets, as it is seen as a sign the global recessioin is ending. It helped to push the gold price to a record high and boosted the Australian dollar to a 14-month high. The positive signals from the first rate increase from a G20 nation are seen as "trumping any negative considerations that go hand-in-hand with higher rates".

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