Australia Rate Hike is a Good Sign for the WorldSince the financial crisis, Australia is the first major economy to raise benchmark interest rates. Although Australia has made this major move, economists do not expect the Federal Reserve or major central banks to follow. Due to the rising prices in metals and other commodities, Australia’s economy is healthier than the U.S. or European economies. A healthier world economy could help the United States by boosting exports. Australia’s central bank mayor, Glen Stevens, said that the risk or serious economic situations has already passed. Australia is benefiting from a rebound in China. Since China is a major trading partner of Australia, importing iron and other minerals, the economy was able to grow the first two quarters of this year, while the U.S. economy was still in a recession. This however, helped boost the U.S. economy, particularly the stock market.
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