RBA to lift interest rates two more times, says State Street senior strategist | The Business

By ABC News (Australia)

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Major central banks around the world are hiking interest rates as higher energy prices compound inflation problems. Financial markets and most economists think the Reserve Bank of Australia will soon join them on September 29. Financial market predictions of the cash rate rising to 4.6 per cent this month rose as high as 95 per cent on Friday. Clive Maguchu from State Street told Alicia Barry he has no doubts this will occur. He said "we've seen the synchronised move higher by a lot of central banks, looking to act against the rising tide of inflation so we think the RBA will join that tide." Clive Maguchu says the RBA won't be done at 4.6 per cent, but he wouldn't put a peak on the cash rate saying the economic environment is too uncertain. "We feel there'll be a second hike to follow, but that all depends on the progress on inflation." He said. Clive Maguchu also discusses how investors are resetting their expectations around interest rates and what it means for various mar

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