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The Reserve Bank of Australia (RBA) has surprised the market by increasing its interest rate from 4.1% to 4.35%, the first rise since May 2023. This move goes against the anticipated actions of other Western central banks, including the Federal Reserve. While most markets are expecting a pause in rate hikes and even a potential cut next year, Australia’s decision suggests a new wave of interest rate increases. This could have significant implications for assets like Bitcoin, which have already priced in the expectation of no further rate hikes by the Federal Reserve. As a result, a recalibration of asset valuations may occur. The future direction of global monetary policy will depend on whether other central banks follow the RBA’s lead or maintain the status quo. This sets the stage for an intense global economic chess game.