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.
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Further reducing the attractiveness of AUD yield .... should be a weight on the Australian dollar  
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