Please click here to view Shane Oliver’s views on the potential implications of the US Fed increasing interest rates.
Key points raised are :
- The US Fed is likely to start raising interest rates to combat sticky inflation and affirm its credibility.
- First US Fed rate hikes in a tightening cycle don’t normally signal the end of the bull market in shares but are consistent with volatility and the risk of a correction.
- A US Fed hike is unlikely to impact the RBA which started hiking before the US Fed & was already likely to hike again this month.
