Harvinder Kalirai Quotes
The commodity story remains very positive for Australia. Relative to commodities prices the Australian dollar isn't overvalued. 
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Commodity | Story | Remains | Positive | Australia |
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High commodity prices are boosting Brazil's terms of trade and leading to record trade surpluses. A favorable external backdrop and still high real interest rates should support the Brazilian real.
- Harvinder Kalirai
If you look back to 1994 when the Fed was hiking rates continuously, after every rate hike the Fed adopted a neutral bias. However, the tightening cycle continued until early '95, for a total of 300 basis points (3 percent). We are not looking for that type of tightening cycle this time, but nevertheless it does suggest that the neutral bias does not preclude further rate hikes down the road.
- Harvinder Kalirai