Westpac forecasts Fed funds rate to exceed RBA rate by more

Author: Eamonn Sheridan | Category: Central Banks

WPAC: FED funds rate to exceed RBA rate by 112 bp's 10 year spread to minus 30bp's by 2019

Westpac citing:
  • We have increased our likely peak in the Federal Funds rate to 2.625% in response to Congress' recently announced spending package.
  • With RBA still expected to remain on hold in 2018 and 2019 we now see FED funds 112 bp's above RBA cash rate in 2019.
Further reducing the attractiveness of AUD yield .... should be a weight on the Australian dollar  
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