Australia is on top of the interest rates world, and the Iran war has only boosted the odds that we’ll stay there. Rates are now tipped to be higher for longer in most developed markets, just not as high as here. Hedge funds are loving it, households less so.
We’re being knocked over by economists’ predictions of more rate hikes. UBS’ George Tharenou now says the Reserve Bank of Australia will hike twice more by August (or perhaps even June), to take the year’s tally to four rises worth 100 basis points, for example. He became more hawkish on Friday, following remarks from RBA assistant governor Chris Kent that the cash rate needed to be above neutral.
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