The SMP suggests that interest rates will surge past their Covid peak
Quite an outlier view (so far) from the initial barrage of notes/reactions.
NAB Strategists had made the following in their preview: "An RBA rule of thumb is that a 4% rise in the TWI
should take 0.4ppt off cumulative inflation over a few years".
Worth noting that TWI AUD assumptions are also higher (65c vs 61c) in SMP with core inflation projected higher - tricky path ahead for RBA
Quite an outlier view (so far) from the initial barrage of notes/reactions.
NAB Strategists had made the following in their preview: "An RBA rule of thumb is that a 4% rise in the TWI
should take 0.4ppt off cumulative inflation over a few years".
Worth noting that TWI AUD assumptions are also higher (65c vs 61c) in SMP with core inflation projected higher - tricky path ahead for RBA