Before RBA Governor Glenn Stevens spoke last Friday the futures market had been pricing in a 50% chance of a rate rise next week but immediately afterwards the probability of such a rise had increased to 70%. Well known RBA watcher Terry McCrann was quite unequivocal in his column yesterday, stating that a rate rise is a sure thing. Rory Robertson from MacQuarie Bank agrees with this assessment and Alan Oster from NAB goes a little further saying that 25 bps rises are likely in both April and May.
Governor Stevens seems intent of deflating the growing property bubble here in Australia.
