In February, the central bank raised rates by 25 basis points, bringing the federal funds rate into the 4.50% to 4.75% range. The next Federal Reserve meeting we can expect is scheduled for March 21 and 22. In contrast, the Australian central bank will take a different path than the Fed.

Reserve Bank of Australia Governor Philip Lowe was the latest to comment that the central bank is likely to start putting the brakes on rate hikes. He admits that the central bank's aim is to reduce the rise in the cost of living, but risks must also be taken into account. These are, for example, that high inflation would persist and later prove very costly to reduce. The second risk is moving too fast and then slowing down the economy.

Projection of FED interest rate during last 5 years. (Source: Tradingeconomics)