WS #16730
The Reserve Bank of Australia (RBA) raised its cash rate to 4.85%, an 18-year high, citing government spending and sticky inflation that is expected to persist through 2027. This move reinforces the global 'higher for longer' interest rate narrative, putting pressure on rate-sensitive sectors like real estate and high-multiple growth stocks. Treasury yields rose in early European trade as markets digested the hawkish stance and awaited US midterm election results.
Macro Rates & Inflation
The Reserve Bank of Australia (RBA) raised its cash rate to 4.85%, an 18-year high, citing government spending and sticky inflation that is expected to persist through 2027. This move reinforces the global 'higher for longer' interest rate narrative, putting pressure on rate-sensitive sectors like real estate and high-multiple growth stocks. Treasury yields rose in early European trade as markets digested the hawkish stance and awaited US midterm election results.