RBA to raise rates in 2022 [Video]
|This just cannot be allowed to go on. The absurdity of a central bank declaring it will do nothing until 2024, while an international body, the OECD, urges a major review into the organisation. The economy is expected to be reasonably strong. Inflation is accelerating and other central banks are already raising rates. Including the RBNZ.
In Australia, rates are at all time emergency crisis settings, clearly feeding house price gains at risk of creating a bubble.
Forecast: RBA Cash Rate to rise to 0.5% in 2022. Risk 1.00%.
The Reserve Bank of Australia itself, does not expect to be doing so, but so extreme are its mis-steps becoming, that it will be forced to review and adjust its rates outlook accordingly. It is one thing to try to be popular by generating artificially low rates to fuel stock and property market speculation, and entirely another to act as a responsible central bank that will not allow inflation and potential asset bubbles to get out of hand.
There is simply no justification for having rates at all time crisis levels until 2024, when NSW and Victoria are opening up now, good growth is expected, but inflation is accelerating as part of a global phenomenon which even the US Federal Reserve is starting to admit is not at all transitory, and housing prices are skyrocketing at an historic pace.
RBA cash rate to rise to 0.5% in 2022, risk 1.00%
10 year bond yield to rise to 2.5% in 2022 and 3.5% in 2023
Australian GDP has remained firm
Consumer Price Index is accelerating dangerously
Housing prices are rising faster than ever
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.