After the Reserve Bank of Australia Governor Philip Lowe committed to long-term low interest rates as they look to bring the inflation level up to the 2-3% target set a few years back. The Governor could potentially be focused on a long plan that will not involve too much fiddling with the rates. In the past decades central banks that have jumped around with interest rates have seen short terms gains but consequences down the line. Lowe’s plan may appear to be to follow a wait and watch policy that shouldn’t have too many bad effects on Australian Consumers.

There are so many factors that take their toll on the Australian dollar with the likes of China and the US Federal Reserve all affecting its path. There is arguably in some cases very little that the RBA can do and really, they can only try to mitigate the exposure as much as possible.

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