It looks like RBA boss Phil Lowe's “got one more hike he's itching to do” in July or August, says our head of government bond strategies Tim Hext in our latest fast podcast

“The inflation data will start to turn down from that point,” says Tim.

“The RBA should then use that as a reason to be on pause for the rest of the year.

“Looking further beyond, towards the middle of next year, I think what you're going to see is potentially the US starting to cut rates early next year.

“With that backdrop, there is a possibility we get lower rates in the second half of next year, even if inflation – and particularly wages – remain a bit sticky.”

For now, Tim argues investors should consider 10-year bonds as they hover around the 4% mark.

He explains why in this podcast.

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Find out more about Pendal's fixed income strategies at pend.al/fixedinterest

Pendal is a global asset manager. Find out more at pendalgroup.com

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