What is this article suggesting for Aus interest rates?

Risks of global US dollar shortage are rising

 

I dont think anyone really knows what is going to happen or the unintended consequences of the RBA allowing US interest rates to surge ahead.
Over the last 40 years, apart from a brief period in the early 2000s, Australia has always kept its rates slightly higher than the US rate, I think the point was to keep it an attractive place for overseas companies to keep money here, earn a decent return and our housing was always AAA rated so their money was "as safe as houses" and easily accessible.
Australian banks were then able to access the funds.
Obviously if the return isn't there anymore and your funds can earn a better return in the U.S,where does that leave countries like Australia that requires overseas funding for its household debt.

 

How’s the pressure for out of cycle rate hikes going? Is it increasing or static?

 

Another article about the spike in the BBSW in early 2018 that eventually led to the Aussie banks raising their rates.
Thanks again to Donald Trump.

Wider BBSW spread due to offshore markets • YieldReport


"Evans’ explanation pointed to repatriation of funds from offshore USD markets. Funds normally available to borrowers have been transferred to the U.S., leading to a shortage of USD funding available for borrowers, including Australian banks which access these markets. “One important explanation is the recent U.S. tax changes which allow U.S. corporates, in particular the cash rich technology companies, to direct funds…back to the U.S. from foreign sources (total funds estimated at around USD$1.5 trillion without paying the onerous 35% tax rate). Foreign banks, including Australia, which had relied on this USD funding, have had to switch demand for funds to local markets, intensifying rate pressures.”

 

more headlines but I'm paywalled so no idea what the article says: Category: | Herald Sun

home-loan-customers-are-being-warned-of-more-outofcycle-rate-hikes