This chart from Westpac is very amusing:
Here are the numbers:
According to rates pricing, the RBA is going to dramatically outpace Fed tightening despite the US having a 1% lower unemployment rate plus double the wage growth and CPI.
And these five RBA rate hikes over the next eighteen months are not going to smash growth to smithereens as house prices fall 20%.
Amusingly, the pricing is already doing it because it has dropped an anvil on the property market as it forces banks to jack up fixed mortgage rates.
It’s not delusional, it’s dislocated.