Opinion
US election will drive long-term Aussie interest rates
Markets should keep a close eye on where yields land after Donald Trump or Kamla Harris claim victory on November 5.
Christopher JoyeColumnistGlobally, the direction of travel for interest rates is lower in the near term. Even here in Australia, where the central bank has set its cash rate at an unusually low inflation-adjusted level compared to its peers, markets are pricing in cuts.
In particular, they expect the cash rate to fall from 4.35 per cent to about 3.7 per cent by September next year, which would mean the Reserve Bank of Australia has eased rates by two to three standard increments.
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