RBA governor Philip Lowe expects inflation to hit 7 per cent by the end of the year and has warned Australians to get used to higher interest rates.
European equities inched higher as investors snapped up beaten-down shares following a bruising sell-off in the previous session on worries over aggressive US interest rate hikes and a potential recession.
Focus is on the Fed’s policy decision due on Wednesday, with many expecting a big three-quarter-percentage point rate hike following hot inflation print last week. “Historically, during periods when inflation has been above 3 per cent, value sectors have outperformed. We favor the energy sector and the UK market, which is heavily weighted to value stocks.”
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