Bullock has gone full hawk, but the market isn’t buying it
The message from the RBA governor is that interest rates are going higher. But money market traders aren’t prepared to put their money where her mouth is.
The long escalator ride from the Fullerton Hotel ballroom to the ground level gave economists plenty of time to mull over Wednesday night’s speech by Reserve Bank governor Michele Bullock.
The message was undeniably hawkish as she warned a battle against domestic inflation would be a multi-year grind to recalibrate demand and supply. Borrowers, should brace for further discomfort, she said. It’s hard to conclude anything other than that rates are going up.
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Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney. Connect with Jonathan on Twitter. Email Jonathan at jonathan.shapiro@afr.com
