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.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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