Interest Rate Predictions

While not raising rates on Tuesday, the RBA hinted rates might go up later in the year. Then came Tuesday night's American Debt Deal, sparking a run on the stock market and headlines like "fear grips investors". Ian Verrender writes in Sydney Morning Herald that local money markets have dismissed the RBA's thinly veiled warning as ancient news. They are now betting that there will be up to three interest rate cuts this year!