Reserve Bank of Australia raised rates by the most in 22 years sparking concern about policy tightening in the lead up to this week's US inflation data and ECB meetingCommuters walk past an ANZ Bank branch in Martin Place, Sydney, Australia on June 07 2022. The Reserve Bank of Australia has raised the cash rate by 0.5% to 0.85%. Picture: GETTY IMAGES/BRENDON THORNE
“As seen with the surprise hike in Australia, most central banks want a higher level of rates to cope with inflation. Policymakers want to have some ammunition to use in case there is a slowdown in growth,” said Enrico Vaccari, head of institutional sales at financial services firm Consultinvest. “The vote casts significant doubt about his tenure as leader,” said JPMorgan economist Allan Monks. “Assuming he can buy enough time, the outcome increases the chance that fiscal policy is loosened further in an attempt to turn the situation around. If not, he could yet be forced out with the Conservatives electing a new leader [and hence prime minister],” he added.
“There’ve been a couple of catalysts behind those moves higher, but a key one over the last week-and-a-half has been the perception that near-term recession risks are fading back again, which is set to give central banks the space to continue hiking rates and thus take bond yields higher,” Deutsche Bank strategist Jim Reid said in a note.
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Is a market crash just around the corner?This has been a brutal year for stock markets, with the US down 18% so far. But even amid jitters over global inflation, there are still assets that SA investors should be looking at as a place to ride out the storm
Sumber: FinancialMail - 🏆 20. / 63 Baca lebih lajut »