The RBA starts raising rates – how far and how fast? And what does it mean for investors? Key points The RBA has hiked the cash rate by 0.25% taking it to 0.35% and signalling more rate hikes ahead. We expect the cash rate to rise to 1.5% by year-end and to 2% by mid next year. But the RBA will only raise rates as far as necessary to cool inflation and high household debt …
The US Federal Reserve starts raising interest rates – implications for Australia and investors Key Points The Fed has finally joined other central banks in raising interest rates, taking the Fed Funds rate from a range of 0-0.25% to 0.25-0.5%. This was well flagged and reflects the tight US labour market and high inflation. The Fed flagged another six rate hikes this year and the start of quantitative tightening soon. First rate hikes in a …
Investment markets and key developments over the past week Share markets remained under pressure over the last week as the number of coronavirus cases continued to surge, economic data started to weaken sharply and financial markets saw increasing dysfunction. The latter was highlighted by a blow out in corporate borrowing rates and a surge in government bond yields (as fund managers facing redemptions sold their liquid previously strong positions and their has been a rush into …
