RBA to investigate rates leak

As I mentioned yesterday, there was some pretty weird dollar action pre-announcement from the RBA, and now:

The Reserve Bank has confirmed that an investigation is under way into a price spike in the Australian dollar one minute ahead of yesterday’s decision to hold the cash rate at 2.25 per cent.

“The Reserve Bank has verified that the monetary policy decision was published at exactly 2.30pm and according to the appropriate procedures.

…“We were sitting here, the Aussie just jumped and we’re wondering what’s going on,” said Annette Beacher, head of Asia-Pacific research at TD Securities.

Release the hounds!

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.