It’s a given that the Fed will hike rates faster than the RBA but by how much? Pantheon with the note:
We have had two rate hikes in our 2022 forecast for more than a year, but we’re now adding a third.
Our base case now is that the Fed will hike in May, September and December, with a further three hikes in 2023. To be clear, we are not abandoning our view that inflation will be much lower a year from now, and back to the target in early 2023. But our inflation forecasts for the next few months are grim, with core CPI inflation likely to come alarmingly—through briefly—close to 7%, thanks to the latest surge in vehicle prices, rebounding airline fares, and hefty increases in rents.
