One of the big themes of 2022 is central bank tightening. The Bank of England hiked last week. The US Federal Reserve is likely to hike next month. And just last week, the Reserve Bank Governor conceded there was a plausible scenario where rates could rise later this year in Australia.
It wasn’t too long ago that the RBA was maintaining it didn’t expect the cash rate to rise until 2024. But the economy has performed considerably better than the RBA expected.
When the RBA will start hiking and how many times it will hike rates is preoccupying markets. We expect the cash rate will lift-off in August, although consider June the first possible “live” meeting for a rate hike.
Hear from Besa Deda, BT Chief Economist for her insights on this topic.
For more information on what’s happening in investment markets, speak to your financial adviser or visit our Super news and insights page.
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