ausbiz: Will the RBA follow the BOE's lead?
In his latest interview with ausbiz, Peter Dragicevich, APAC Currency Strategist at Corpay Cross-Border Solutions, delves into the unexpected 50 basis point increase by the Bank of England and its consequences for other central banks. Dragicevich states that the move's magnitude resulted from inflation and wages surpassing expectations, leading to worries about the wage-price spiral. He also highlights that services inflation in the UK, US, and Europe might prompt the Reserve Bank of Australia to take additional measures in the upcoming months. Dragicevich expresses concerns about central banks raising interest rates excessively and causing more significant economic downturns, suggesting that policy easing might be needed in the future. Regarding currency markets, he envisions potential Yen strength as a noteworthy development in the coming year, while the Australian Dollar continues facing challenges against other currencies, such as the Euro and the Pound.
Watch the ausbiz video here: https://ausbiz.com.au/media/will-the-rba-follow-the-boes-lead?videoId=29936
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