Australia Rate Hikes in 2022 Are a Real Possibility, Auld Says.

Markets are much more optimistic, fully pricing in an initial 15 basis-point hike in May that would take the cash rate to 0.25% and two quarter-point increases -- with the possibility of a third -- over the remainder of 2022. (Bloomberg) -- Australia's unemployment rate is likely to fall to the "low fours" next year, sparking an eagerly-awaited increase in wages growth and creating conditions for interest-rate liftoff, said Sally Auld, chief investment officer at JBWere Ltd. "To get a rate hike by the end of the year, you need all the numbers to print in the right zone both on wages and on core inflation. [Extracted from the article]