WS #16725
The Reserve Bank of Australia raised interest rates to an 18-year high of 4.85%, warning that inflation will persist. Contrary to standard hawkish reactions, the ASX 200 rallied as the market interpreted the move as 'peak tightening,' signaling that central banks are done hiking. This dovish tilt on hawkish news has boosted global risk appetite, reinforcing the Nasdaq 100’s recovery from earlier losses.
Global Macro Rate Hikes & Equities
The Reserve Bank of Australia raised interest rates to an 18-year high of 4.85%, warning that inflation will persist. Contrary to standard hawkish reactions, the ASX 200 rallied as the market interpreted the move as 'peak tightening,' signaling that central banks are done hiking. This dovish tilt on hawkish news has boosted global risk appetite, reinforcing the Nasdaq 100’s recovery from earlier losses.