If the RBA wanted an excuse to end interest rate hikes, the collapse of two US banks just gave it one.
Money markets today assumed the Reserve Bank will pause its interest rate tightening cycle next month — with a small 7 per cent chance they may cut the cash rate by 0.25 percentage points.
However, AMP's chief economist Shane Oliver does not believe the interest rate landscape has changed either in the US or in Australia."At this point, it's not clear that we are seeing a full-blown crisis unfold or not and high inflation is a bit of a barrier on what the Fed can do," Mr Oliver explained.
"But how far the Fed and other central banks can support economies will at least partly be impacted by inflation."
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