The RBA must raise rates for a lower dollar

Global rates are going up, but rather than choose to lead the cycle the RBA is giving every indication it will keep playing 'follow the leader'. This will only put us at further disadvantage in the currency war.

Yes, it’s true. If the Reserve Bank of Australia wants a lower currency, then the smartest thing it could do -- right now -- is hike rates. Instead, the press release we saw after the board’s decision on Tuesday maintains the current exchange rate as a reason for more cuts.

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