Ellerston Capital’s Tim Toohey sees a risk that financial markets could be wrong-footed by the pace of monetary tightening next year.
“I think that if anyone was looking at these [Fed] growth forecasts with a clean sheet of paper, they’d have to say that it’s most likely there’ll be at least three rate hikes in 2018, perhaps four. Instead, the market is pricing in one or two rate hikes.”