Jinshi Data, June 27th news, Australia’s second largest pension fund, the Australian Retirement Trust Fund (ART), said that the currency market mistakenly believes that the Reserve Bank of Australia will resume rate hikes at the next meeting. Earlier, higher-than-expected inflation rates this week prompted traders to increase their bets on a rate hike in August. Traders believe there is a 50% chance of a rate hike in August and have postponed any future rate cuts to the end of next year. Andrew Fisher, ART’s head of investment strategy, said, “We don’t think there will be a rate hike in August. From the perspective of the Reserve Bank of Australia, I think they are happy for the market to think that the next step may be a rate hike because they don’t want complacency to spread.” ART’s basic forecast is that interest rates will not change in the next 12 months, and the next step is a rate cut. The CPI for the quarter ending July 31st will be more important in determining the future path.
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