It seems market analysts are in agreement that the June rate hike of 25-basis points (bps) is almost certain.
The market has pretty much priced in a rate hike. Gold price has come back down from $1300 and steadied at $1268.
This means the Fed’s short-term interest rates would rise to 1.0% – 1.25%.
Bad news for for NZ and Australia, the banks have reported their funding costs are likely to increase so the mortgage rate are likely to go up. Even if the OCR stays the same.