I was reading http://business.smh.com.au/business/...0808-3s0c.html and didnt realise that "A benchmark rate of 7.25% in Australia, compared with 0.5% in Japan and 2% in the US, has made the currency a favorite with investors looking to invest in higher-yielding assets." I always knew that US rates were a lot lower than Aussie rates but the Japanese rates are lower again which made me think...
Why are our rates so much higher compared to them?
Thanks in advance for killing my curiosity
PS I tried to find other related posts but couldnt so sorry if this has been posted before.