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In January a better-than-expected CPI result had markets clamouring for a rate cut, which was duly delivered at 0.25 bps at the February meeting of the Reserve Bank of Australia.
In October, core inflation eased to 3.5%, while headline inflation fell back into the Reserve Bank of Australia’s (RBA) 2-3% target range for the first time since March 2021.
In the September quarter, the Australian equity market outperformed global equities, rising 7.8%, driven largely by a surge in mining stocks following China’s stimulus package.
In August, the market was supported by encouraging inflation data for July. Thanks to government energy measures, power costs came down, helping to lower annual inflation from 3.8% to 3.5%.
The Australian Prudential Regulation Authority (APRA) has announced major changes to the structure of bank hybrid securities, which have been used as a defensive investment for some retail investors for years.
With economic growth slowing down, the Reserve Bank of Australia (RBA) might have room to ease policy sooner.
Higher than expected inflation figures saw markets price in a potential upward move on interest rates from the RBA.
