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RBA: Up, up and away?
The Reserve Bank of Australia meets next week and the short-term interest rate derivative markets are pricing in a 94% chance of an RBA hike. The question is, ’will the RBA hike?’. At the last central bank meeting, the RBA took a ‘hawkish hold’, but recognises that it may need to be ‘less patient’ over hiking rates due to increasing inflation pressures. Even more reasons to be less patient? On Wednesday 27th April the latest inflation data came in very hot. You can see the print here and how the headline is now at 5.1% y/y above the maximum high expected of 4.9%.So, inflation pressures are building and ... (full story)