ausbiz: Is it too soon to expect an 'immaculate disinflation'?

CalendarJuly 14, 2023

In his latest interview with ausbiz, Peter Dragicevich, APAC Currency Strategist at Corpay Cross-Border Solutions, shares his examination of the fluctuating US dollar condition, its association with the Federal Reserve's rate climb cycle, and the impacts of easing inflation. He suggests that markets may become vulnerable in the coming months and predicts further rate increases by the Federal Reserve.

However, Peter maintains that while the rate hike cycle might be nearing its end, the economic impacts are just commencing. He also discusses the possibility of a temporary recovery for the US dollar, based on positive US retail sales and another anticipated rate hike by the Federal Reserve but adds that he is bearish for the US dollar for the upcoming year.

Peter hints at a slowdown in the US economy and brings attention to continued low unemployment rates. Considering Australia, he expects one more interest rate hike from the Reserve Bank of Australia, with services inflation still unpleasantly high, and anticipates natural tightening from fixed rate mortgage rollover. He ends on the note of Canada's financial situation, nonchalantly expecting another hike due to high core inflation there.

Watch the ausbiz video here: