i

Daily Alert: Antipodean interest rates on the march

  • The most eye-catching development in markets over the past 24 hours has been the rocket higher in antipodean wholesale interest rates.
  • Headline Australian Q3 inflation printed on expectations at 0.8% qoq (3.0% yoy), but it was really all about the 0.7% lift in the policy-relevant trimmed mean measure.
  • Aussie markets had already been dubious about the RBA’s ‘no rate hikes till 2024’ forward guidance but the clearer confirmation that Australia is not exempted from the global inflation shock saw markets pull forward the expected timing of the first RBA tightening further to around May 2022.

Contact us

Other reports