The Australian share market:

Question

Quizplus · Accepted Answer

Changes in interest rates can impact the economy and therefore, the investment decisions of shareholders. If interest rates rise, borrowing costs may be higher for companies, which can lead to lower profits and reduced investment. In contrast, if interest rates fall, it may be easier for companies to borrow money to invest in growth, which can lead to higher profits and potentially increased share prices. Therefore, the Australian share market cares about monetary policy and the decisions made by the Reserve Bank of Australia.

The Australian Share Market