... even a rate cut. The Australian dollar typically reacts sensitively to such nuances: firmer language supports the AUD, while softer language exerts pressure on it. Today's protocol indicated that the regulator is concerned about the gap between low unemployment and still high inflation but notes early signs of economic cooling. The result – the RBA keeps the door open for further actions, but will decide based on new data. This somewhat calmed the market: the AUD did not experience sharp moves,...

... even if they understand the risks of escalation. Harsh rhetoric yields political dividends, allowing leaders to divert public attention from internal issues and unify support around authorities. When Pakistan faces economic troubles, rising prices, unemployment, or political crises, the theme of an external threat from India becomes a convenient distraction. For example, under Prime Minister Imran Khan (2018-2022), sharp criticism of India over its Kashmir policies and the treatment of Muslims in ...