Rent and energy shocks to trigger more interest rate hikes

Wednesday 24 May 2023

There’s no doubt about it. Albo’s policy disasters in energy and housing are fast coming to bear upon the inflation outlook.

Cash rate futures are now pricing another hike in the next few months:

As Albo’s failed gas policies and failed Budget come to bear in the form of a 4% upwards shock to the CPI over the next year at current prices:

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About the author

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.