While many analysts are awaiting specific details of President Trump’s fiscal agenda before amending interest rate and growth forecasts for the US, some pundits are already talking at least three US Federal Reserve rate hikes this year with the first possibly as early as next month.
Conversely, the outlook for Australia remains that monetary policy will stay on hold over the course of this year with the next move (up) in rates not until early 2018 (refer chart below). However, with any move by the US Federal Reserve, expect local market rates to rise in anticipation of similar moves here and as the global and domestic economic outlook improves.
Disclaimer: Whilst all care has been taken in compiling the information, the information should not be relied upon as substitute for professional advice where necessary. Rural Bank accepts no responsibility for the accuracy, completeness or timeliness of the information and disclaims all liability in relation to any loss or damage suffered by the use of or reliance upon any information contained herein or in any attachment or annexure hereto by any person. Rural Bank – A Division of Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL 237879