Although Australian inflation remains among the highest in the world, some think interest rates are about to settle.
Notwithstanding this week’s news confirming that Australia is in the grip of a protracted inflation cycle, bond markets are only pricing in one more interest rate increase.
This is surprising given that the central bank’s preferred inflation proxy, known as the trimmed mean CPI, climbed at a very rapid 4 per cent annual pace over the September quarter and by 3.7 per cent over the prior 12 months.
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Mortgage holders reeling from the blunt force of five interest rate hikes this year are questioning if there are other ways of controlling inflation. The answer is not simple.
The RBA's latest interest rate decision has ignited debate about the role of government spending in soaring inflation.
‘Low-hire, low-fire’ labor market shows sluggish growth but few layoffs, with an interest rate hike expected in December
The US president’s demands for falling interest rates are going to be ignored when the Federal Reserve responds to last month’s hotter-than-expected inflation rate.
US Treasuries slumped, pushing yields sharply higher, after hotter-than-expected inflation data and comments from a key Federal Reserve official fueled bets that the central bank would need to deliver more aggressive interest rate hikes to cool inflation.
The report comes at a critical juncture for the Federal Reserve as it considers its next move regarding interest rates.
