Welcome to the August edition of the Economic Update by Senior Economist, Bob Cunneen Find out which key events have been driving markets: Central banks continue to rapidly raise interest rates to contain inflation. Australia’s central bank raised the interest rate by 0.5% in both July and August. The US central bank raised interest rates…

At its meeting today, the Board decided to: increase the cash rate target by 50 basis points to 1.85 per cent increase the interest rate on Exchange Settlement balances by 50 basis points to 1.75 per cent. The Board places a high priority on the return of inflation to the 2–3 per cent range over time, while keeping the economy on an even keel….

At its meeting today, the Board decided to: increase the cash rate target by 50 basis points to 1.35 per cent the interest rate on Exchange Settlement balances by 50 basis points to 1.25 per cent. Global inflation is high. It is being boosted by COVID-related disruptions to supply chains, the war in Ukraine and strong demand which is putting pressure…

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Highlights: Australia’s S&P/ASX 200 Index finished the month of May -2.6%, with all sectors of the market lower except Materials. The US Federal Reserve has raised rates by 0.5%, the most aggressive interest rate increase in over 20 years, in response to the high inflation rate.  Annual inflation rose to 8.1% in the Euro zone,…

At its meeting today, the Board decided to: increase the cash rate target by 50 basis points to 85 basis points increase the interest rate on Exchange Settlement balances by 50 basis points to 75 basis points. Inflation in Australia has increased significantly. While inflation is lower than in most other advanced economies, it is higher than earlier…

Highlights: Australia’s S&P/ASX 200 Index finished lower over the month masking positive performance from seven out of 11 underlying sectors. Information Technology (-10.4%), Materials (-4.3%) and Consumer Discretionary (-3.2%) were the major laggards. Inflation remains a concern in the USA, with the 8.5% annual rate being the highest level since December 1981. The Russian war…

At its meeting today, the Board decided to: increase the cash rate target by 25 basis points to 35 basis points increase the interest rate on Exchange Settlement balances from zero per cent to 25 basis points. The Board judged that now was the right time to begin withdrawing some of the extraordinary monetary support that was put in…

Highlights: Australia’s S&P/ASX 200 Index had a strong month returning 6.9% led by Information Technology (+13.2%), Energy (+9.8%), and Materials (+8.9%). All sectors finished up during the month. The Federal Reserve raised interest rates to 0.50% as they look to tackle the highest level of inflation in 40 years. The war in Ukraine continued to…

At its meeting today, the Board decided to: maintain the cash rate target at 10 basis points and the interest rate on Exchange Settlement balances at zero per cent Inflation has increased sharply in many parts of the world. Ongoing supply-side problems, Russia’s invasion of Ukraine and strong demand as economies recover from the pandemic are all…