# Interest rates, Australian dollar set to rise as US inflation gathers momentum: Warwick McKibbin - ABC News

> Professor Warwick McKibbin said Australia may face higher interest rates and a stronger dollar in 2017 as US inflation rises. He estimated a global trade war sparked by US tariffs on China could cut Australian growth by about 5.5%, or $80 billion.

- Date: 2017-02-08 · published 2017-02-08T12:00:00.000Z
- Category: macro · region Australia · magnitude low
- Page: https://feedsoft.ai/events/72769-interest-rates-australian-dollar-set-to-rise-as-us-inflation-gathers-momentum
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

A tariff-driven trade war would reduce trade flows and commodity demand, while stronger US inflation would lift the dollar. Both risks bear on grain, meat and meal export pricing.

## Read by commodity

- AUDUSD: bearish ▼

## Sources

- abc.net.au: https://www.abc.net.au/news/2017-02-08/australia-higher-interest-rates-stronger-dollar-us-inflation/8252008

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.