Rising Aussie dollar puts pressure on rates
Australian interest rates are under pressure after higher than forecast inflation figures for the March quarter. Underlying inflation rose to 4.2 per cent reversing many market expectations of a future rate cut. Financial markets increased the probability of a rate rise as early as August to 60 per cent, dependent upon on the next release of CPI figures in July. Speculation about a rate increase helped to push the Aussie dollar pass the US95 cent barrier, its highest level since 1984.
Source: The Age