This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Australia's Central Bank Cuts Rate To 2.75 Percent

"One of the challenges that flows from the higher dollar and our domestic strength is the squeeze on profits for business across our economy caused by that higher dollar," he said.

Despite commodity prices falling as Australia's mining boom cools, the Australian dollar remains high due to demand for government bonds which are viewed by investors as a safe haven and have higher returns compared with U.S. and Japanese government bonds.

Australia is now only one of eight countries with a triple-A credit rating on its debt from all three major rating agencies â¿¿ Standard & Poor's, Moody's Investors Service and Fitch ratings.

The International Monetary Fund said last month that it expects the Australian economy to return to trend growth in 2014, despite the economic damage being caused by a high Australian dollar.

The IMF kept its 2013 growth forecast for Australia at 3 percent. It raised its forecast for 2014 to 3.3 percent from 3.2 percent.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs