Daily Flows
- ING (A-1/A) attracted funds yesterday, offering 4.77% for 3-year and 4.80% for 1-year term deposits, drawing interest from yield-seeking investors.
- Demand remains strong for recent Senior Unsecured Issuances, with active trading seen across the 4 major banks’ recent 3- and 5-year launches.
- The short end of the curve remains relatively flat, with reference rates ranging from 4.10% to 4.21% (cash to 6 months).
CPI Monthly Indicator Lifts by 2.5%
- The RBA released the Consumer Price Index (CPI) indicator for January 2025, showing a 2.5% annual increase, while the annual trimmed mean rose to 2.8%.
- The main contributors to the increase in inflation were food, housing, alcohol, and tobacco, reflecting broad-based price pressures.
- Electricity prices increased as the $1,000 Queensland electricity rebate was fully utilised, removing the temporary downward pressure on bills.
- A notable change is the re-weighting of the CPI basket, with rents and education seeing the largest increases, while electricity, new dwellings, and fuel experienced the biggest decreases.
- There is one more monthly inflation reading before the RBA’s next meeting in April, which could have slight influence on policy direction.
