Wednesday 5th May 2021Janet Yellen surprised the markets this morning suggesting that it might be necessary to raise interest rates to stop the economy from overheating. A call to be made by the Federal reserve, not the Treasury Secretary. Initial market reaction was paired back as the reading of the intent and timing of the comments was watered down. Meanwhile, shares fell in the UK and Europe, although big -tech fared worse than cyclicals. The RBA has upped their growth forecasts for Australia, and cut their unemployment rate expectations, whilst the RBNZ’s Financial Stability Report will be looked at with keen interest to see the influence of a housing market running hot.

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