Bond yields dived after the RBA defied markets with a smaller than expected cash rate increase, signalling the end of a sharp and short tightening cycle is near.
Australia’s central bank on Tuesday surprised markets by lifting interest rates by a smaller-than-expected 25 basis points, saying they had already risen substantially,
Leading economists say the decline in global conditions, volatility in financial markets and rising interest rates means a downturn at home is now “plausible”.
Australian mortgage-holders are set for another interest rate hike, following troubling global economic conditions that are putting central banks under pressure.