Re: RBA – 86% OIS odds of a hike in March

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(an interoffice email)

Looks familiar – the CB forecasting inflation falling from higher and higher levels as it move up rather than down as originally forecast.

———- Forwarded message ———-
From: Milo
Date: 2008/2/14
Subject: This Picture says it all, I recon – 86% OIS odds of a hike in March
To: Warren Mosler, Karim

Core inflation and successive RBA forecast tracks

The RBA has come to grips with Australia’s stark inflation reality. Inflation forecasts have been revised up significantly (see Figure 1), the RBA will deliver

more rate hikes and domestic demand will eventually slow. At the moment, forecasters are grappling with how high the terminal cash rate will be. Is it

7.5%, 8.0% or higher?

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