Despite a drastic 0.5% cut in the US Interest rate to help ease the pressure on Stock Markets around the world during the Sub Prime fallout, the Australian Federal Reserve has decided to leave rates unchanged down under and adopt a wait and see policy.
The fears that economic growth in Australia remains strong and the flow on to possible inflationary pressure has kept the Board in a state of limbo despite many commentators looking to them to relieve pressure and offer a reduction.
This has kept the Australian dollar high, trading at record levels around the US89c mark, which is unwelcomed by many Australian compaines involved in export activity including the important mining sector.
The last rise was in August and dealt a critical blow to the re election chances of Prime Minister John Howard, so no doubt he to is disappointed in the status quo as a reduction would have been a major boost to his campaign efforts.
We will now have to wait until November to see what direction rates may take, and hopefully common sense may prevail and a cut may be on offer.
The fears that economic growth in Australia remains strong and the flow on to possible inflationary pressure has kept the Board in a state of limbo despite many commentators looking to them to relieve pressure and offer a reduction.
This has kept the Australian dollar high, trading at record levels around the US89c mark, which is unwelcomed by many Australian compaines involved in export activity including the important mining sector.
The last rise was in August and dealt a critical blow to the re election chances of Prime Minister John Howard, so no doubt he to is disappointed in the status quo as a reduction would have been a major boost to his campaign efforts.
We will now have to wait until November to see what direction rates may take, and hopefully common sense may prevail and a cut may be on offer.
