Daily Flows
- Standout levels are being offered in the 2-year term deposit, with 4.70% achievable.
- At the shorter end of the curve, 4.71% was locked in for a 2-month term deposit.
- The 6-month term remains the outright highest level, with 5.15% available from an ‘A’-rated bank.
RBA Speaker: Long-Term Inflation Remains Well Anchored
- It has been quiet, with markets awaiting crucial employment data in Australia and retail sales in the U.S.
- RBA speaker Sarah Hunter addressed inflation expectations, emphasising their importance in guiding households and businesses, contributing to a healthy economy.
- When expectations become de-anchored, inflation volatility rises, creating uncertainty and disrupting economic decision-making.
- Inflation expectations influence long-term interest rates, portfolio allocations, and asset prices, all of which impact financial markets.
- Despite high inflation, short-term expectations have been gradually aligning with long-term expectations, which have remained anchored.
- Inflation expectations are crucial for the RBA in achieving its three-pronged mandate: monetary stability, full employment, and economic prosperity.