Today's 50bpts was in line with expectations and with quarterly inflation numbers out this month, there is a case for more rises coming in July and August. We're of the view that the cash rate will rise to around 2-2.25% by the end of the year. The big untold story here though is what's happening in the United States where 10 year bond yields fell well below 3% on Friday. This is well off the peak level in the mid 3% range. It implies growth expectations are falling. We're not surprised.
More rate rises coming before sudden stop
More rate rises coming before sudden stop
More rate rises coming before sudden stop
Today's 50bpts was in line with expectations and with quarterly inflation numbers out this month, there is a case for more rises coming in July and August. We're of the view that the cash rate will rise to around 2-2.25% by the end of the year. The big untold story here though is what's happening in the United States where 10 year bond yields fell well below 3% on Friday. This is well off the peak level in the mid 3% range. It implies growth expectations are falling. We're not surprised.