Business
ASX investors watch out for a rise in interest rates in 2022
The Reserve Bank of Australia might be forced to break its promise and lift rates as soon as next year, if credit markets are right.
Interest rate traders are betting that our central bank will increase the cash rate to 0.25 basis points in late 2022 from its record low levels of 0.1% currently.
What’s more, these traders think interest rates will be at least 0.5% the following year, reported the Australian Financial Review.
Interest rate traders playing chicken with the RBA
That runs contrary to RBA Governor Philip Lowe’s commitment to keep rates at record lows until 2024, if not later.
Inflation fears are driving credit investors to undertake one of the boldest trades on the market – to bet against the central bank.
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