- RBA caught the market by surprise with their decision on monetary policy at their September meeting
- That was despite the shift in approach being flagged in the previous month’s post meeting statement
- The decision reverberated around markets leaving the yield curve markedly changed
- It sets the tone for next month with a near term pause looking increasingly likely in the months ahead
- Market liquidity has become less volatile, with ADIs not experiencing such extremes in funding pressures.
- Term deposit and NCD rates have continued to increase, in line with reference rates and market expectations.
The Australian Economy
- The Australian Dollar losing strength is presenting a ‘Mining Boom’ like environment for the Australian economy.
- The consumer has remained resilient and continues to drive the economy forward.
- With mortgages repricing in the middle to back end of 2023, households will be in for a rude shock as their disposable income decreases.
- Uncertainty plagues the path ahead for Australia.
Please click here to download the October Monthly