It’s time to prepare for the upcoming RBA Interest Rate Decision. When the pandemic hit, Central Banks had to react quickly. Economies worldwide were being hit with restrictions, lockdowns, and torrid death tolls and infection rates.
Like many of the central banks, The RBA acted quickly, reducing rates. They decreased rates from 0.75% in February 2020 to 0.5% in March 2020. With two meetings in March 2020, the decision was further cuts were needed, so reduced again down to 0.25%.
After holding rates steady for the remainder of the year; The RBA Interest Rate Decision was to reduce rates to 0.1% (the same rate as The BoE).
The consensus has been correct in forecasting rates since May 2020.
Although world economies are starting to try to get back to a new ordinary, analysts still predict no change in Interest Rates yet. Will they continue their correct predictions?
Interest Rate Decisions always carry the potential for colossal volatility spikes and should be considered a hazardous time to trade.
Are you a news trader?
Or maybe a breakout trader?
If you plan to trade The RBA Interest Rate Decision, Tweet us how you plan to tackle the volatility storm should it surface!
Brought to you by Darwinex: UK FCA Regulated Broker, Asset Manager & Trader Exchange where Traders can legally attract Investor Capital and charge Performance Fees.
Content Disclaimer: The contents of this post (and all other posts’) are for educational purposes only, and are not to be construed as financial and/or investment advice.