Daily Flows

• AMP (A-2/BBB+) has returned to the market, seeking to raise funds with a competitive 5.10% for 9 months.
• Market Forces, a leading voice on environmental impact, has recently classified AMP as a non-fossil fuel counterparty.
• Several banks have been actively chasing funds lately, resulting in significant activity in the term deposit space.

Michelle Bullock Stands Firm on Data-Dependent Approach

• Last night, RBA Governor Michelle Bullock reiterated themes from the recent Statement on Monetary Policy (SOMP). Core inflation remains concerningly high, monetary policy is notably less restrictive than in global counterparts, and the labour market remains tight.
• As always, the ‘data-dependent’ approach was reaffirmed, with the Governor also highlighting the significant margins of error in inflation forecasts.
• Michelle noted that interest rate cuts are not solely dependent on inflation returning to the target band but on the Board’s confidence in the outlook.
• She discussed potential triggers for a rate hike, including further labour market tightening or a sustained upward trend in inflation.