Odds In Favour Of RBA Hike In August

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By Rudi Filapek-Vandyck

Yesterday’s surprisingly strong employment data is causing ripples across Australia’s financial landscape.

We already reported that CommBank chief economist Michael Blythe has shifted his view to a likely rate hike in August (2.5 weeks away).

This morning it is St George Bank reporting it has brought forward its RBA interest rate hike time schedule from the final quarter of 2006 to the next meeting in August.

Chief economist Stephen Koukoulas at TD Securities, one of the first to predict interest rates were likely to go up further in August, has simply reiterated his views of two more hikes with the prediction that increased interest rate expectations are likely to push the Aussie dollar to US$0.77 soon.

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