RBA Recap

• 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 Dynamics

• 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