What’s ahead for interest rates?
In Australia the RBA has interest rates set at 1.5%. Looking at forward pricing implied by the futures market, there are no interest rate hikes on the horizon. Currently, the market is pricing a 65% chance that by September 2019 rates will be exactly where they are today.
Australian Interest Rate Expectations
In the US the Federal Reserve has rates set at 2-2.25% however the outlook is different, with rates expected to go higher, although at a slower pace than the market had thought only a few months ago. Markets are pricing a 77% chance of a December hike however there are now only 1.5 hikes priced in for 2019.
US Rate Expectations
