Daily Flows

• There is a bid tone in the market, with multiple banks competing for funds.
• According to APRA data, this demand for funds may be attributed to a rise in loan growth.
• In the fixed income space, the recent Great Southern Bank issuance is trading at +99.

RBA Lowers Trimmed Mean Inflation Outlook & U.S. Election

• The RBA has left the cash rate unchanged, maintaining a mildly hawkish tone. Minimal changes in its post-meeting statement suggest a slight shift towards a neutral stance.
• The updated Statement on Monetary Policy (SMP) includes lower forecasts for trimmed mean inflation and a higher projected unemployment rate.
• The SMP notes tentative signs of increased spending and stabilising labour market conditions, though broader uncertainties, such as subdued household spending and global risks, continue to weigh on the outlook.
• The U.S. election is set to unfold today, with polls indicating a very tight contest and showing Trump as a slight favourite.