According to conventional economic theory (which admittedly is far from proven), higher interest rates lead to a stronger currency, all else equal. More importantly, the Reserve Bank has control over interest rates. If you are right and Australia is going into recession then why would the Reserve Bank increase interest rates? Their role is to protect the financial system so how would increasing interest rates in a recession help?
MNY Price at posting:
$1.26 Sentiment: Buy Disclosure: Held
