cash rate

Core inflation slowed in August, reducing the odds of an expected RBA rate rise in November.

The RBA resumed raising interest rates, retaining a tightening bias that was watered down in the press conference.

Still-high underlying inflation has picked up and is running above the RBA's forecast profile.

As Fiscal 2027 begins, investors face a market shaped by a myriad of forces including shifting equity leadership and uncertain bond markets.

House prices, which have stalled on RBA rate rises, could fall by 4-9% on tax changes, potentially reducing the peak in the cash rate.

The RBA is underachieving on inflation and overachieving on employment, with monetary policy that is hardly restrictive.

We narrowly favour a rate hike in March .with scenario work suggesting the cash rate could reach 4¼-4¾% on persistent inflation.

Investors are still driving the housing market, but government financial assistance has driven a surge in demand from first-time buyers.

The first rate rise since 2023 should worry investors and the RBA might not be done there.

Strong inflation continues to run above the RBA's forecast profile.