CHART OF THE DAY: The Confusing World Of RBA Interest Rate Expectations

The ANZ, in its weekly economic commentary, included this great chart below which while at first blush seems somewhat confusing, actually tells one important story for interest rates.

Even though there are a few holdouts still calling for one last interest rate cut, the overwhelming majority of forecasters – and the market – now believe that rates are headed higher next year.

Believe it or not, that’s good news because it means the economy is healing and monetary policy is working.

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