The diverging interest rate outlook between the Reserve Bank of Australia and the US Federal Reserve has catapulted the Aussie dollar to the highest level in three months after the US central bank cut its policy rate for the third time in a row.
The world’s most influential central bank lowered interest rates by a quarter of a percentage point to a 3.5 per cent to 3.75 per cent range, as was widely expected, but remarks from Fed chairman Jerome Powell surprised some pundits who had been bracing for him to take a harsher tone on inflation.
