Little impact from Australian rate hike

Australia's lending interest rate hike has fueled concern that other Central Banks may follow suit. However, analysts say that a general world-wide interest rate hike would still depends on the US Federal Reserve taking the lead.

China, for its part, is not likely to raise its interest rate in the near term, because its Consumer Price Index has been declining for eight months, and analysts say a moderately easy monetary policy is better for the economy. They also expect that an interest rate hike in China will only occur next year at the earliest.

However, some Chinese enterprises will likely be impacted by the Australia interest rate jump, especially steel mills, which are currently in negotiations over iron ore prices.

For ordinary Chinese, the stronger Australian currency will increase expected returns from Australian dollar wealth management products.