australian economy

This year has proven a good one for investors overall. Can we expect the same in 2026?

Morgan Stanley gives its ASX 200 target, whether we get rate cuts in 2026 and the big themes for the Australian economy.

High inflation in Q3 has seen the RBA worry that it has the wrong take on spare capacity in the economy, ruling out further rate cuts.

Inflation spiked in Q3, posting one of the largest ex-COVID increases in the inflation targeting era, well above the RBA's forecast.

A surge in inflation in Q3 points to rates on hold for the rest of thus year and a much reduced chance of a cut next year

The US, UK, and France face high and rising public debt, where increased defence spending will add to the problem.

House prices have an outsized sensitivity to lower interest rates because the supply of housing is failing to keep pace with strong demand

…and the state of the Australian economy.

While there are reasons for caution, there are also reasons for optimism as the wealth effect holds up the consumer and drives share market.

Bank funding is relying more on bank bonds and local investment and pension funds have grown in importance as buyers of these bonds.