We have seen the first moves by central banks, notably RBA, having raised rates twice, and Norway as well. Let’s look at some of the major banks, their guiding principles and possibilities for rate increases in the next 6 months, in order of increasing strength…
The BoJ has kept rates at 0.1% since December, and the [...]

With a second increase in the RBA (AUD) central bank rate to 3.5% and the Norges bank (NOK) also recently increasing its rate by 25 bps (target rate 1.25-2.25%), the carry trade may be resurrected from the ashes of 2008. The carry trade unwound completely this year as central banks reduced their rates (eg the [...]