GBP/AUD Almost 0.60% Higher as Investors Favour the Pound

28 September 2017 by News Desk   |   SHARE  

The pound climbed against the Australian dollar (GBP/AUD) by around 0.58% on Thursday following cautious comments from the Reserve Bank of Australia (RBA). Deputy RBA Governor Guy Debelle spoke in London on Thursday at a Bank of England (BoE) independence conference and suggested that central banks play their part in managing a country’s economy, but warned that they have limitations, and ‘should not be regarded as the font of all wisdom.’

Debelle stated: ‘Central bank independence does not imply the complete delegation of demand management to the central bank. The achievement of the output and inflation goals of the central bank is very much a function of the fiscal response too. There is a risk that the cult of central bank independence has placed excessive pressure on the central bank to always do more.’

The Aussie dollar has fallen against a host of other major currencies for a number of reasons of late, and investors have favoured other assets such as the pound, euro, and US dollar as monetary policy in their respective nations appears to be heading into positive territory. Additionally, risk sentiment over geopolitical tensions is still a factor in the market.

The GBP/AUD exchange rate is currently trending in the region of 1.7167 interbank, approximately 0.58% higher.

Disclaimer: This economic update is provided by FC Exchange a Global Reach Group Company, industry leaders in foreign exchange. Authorised affiliates are permitted to reuse content.

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