Potential australian dollars overshoot

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Reference no: EM131164952

RBA alert to potential australian dollars overshoot

RBA Deputy Governor Philip Lowe said that in the current environment thr Austialian dollar might 'overshoot' and become too strong.As a result,interest rates wil remain flexible.

a. Why would the RBA be concerned if the australian dollar was to 'overshoot'?

b. What can a flexible interest rate policy to if the dollar does 'overshoot'?

Reference no: EM131164952

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