Australian Quarterly Update
The market is now expecting a greater chance of a cut by the RBA than a hike over the next year. At the same time the central bank has held firm in its bias to leave rates on hold. In this quarter’s update our Australian rates PM, Tim Hext, offers his views on the outlook for 2019 and what could move the dial. We also assess the prospects for the local credit market, where macro risks have weighed on investor appetite and liquidity has become increasingly scarce. Meanwhile in cash markets, funding cost increases have fuelled out-of-cycle mortgage rate hikes. Our Cash PM, Steve Campbell takes a deeper dive into the causes and also examines issues in the RMBS market. Finally, we discuss new developments in the ESG arena including NSW TCorp’s first green bond issuance.
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