RBA keep cash rate at 'painful' 4.35%, becomes more aggressive. Investors to focus on quality, look overseas for higher growth, as rates to stay higher for longer
Two major things happended today in finance today
Firstly, the RBA kept the cash rate at a 'painful' 4.35% and became even more aggressive (see below takeaways). Aussie mortgage holders won't get any reprieve and can expect the cash rate to stay higher for longer. But today's RBA press conference highlighted that investors now need to focus on quality stocks and look overseas for potential high growth, especially given the US is cutting interest rates.
Secondly, China's central bank cut rates today, with the PBOC announcing a 'bazooka' of stimulus never seen before, with policies that could provide trillions of dollars in liquidity. So we now have the world's two biggest economies cutting interest rates in unison. This means local investors should consider investing in commodity stocks such as copper, aluminum, and iron ore names, which are likely to gain steam, as well as consumer spending stocks facing China such as Alibaba $Alibaba (BABA.US)$, JD.com $JD.com (JD.US)$, and
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What you need to know from the RBA today
The four bearish and hawkish flags from the RBA press conference and statement today:
1. Governor Bullock concedes her prior statement 'was blunt,' but she agrees, 'people may need to sell their homes.'
2. 'Consumption is very, very sluggish.People are under pressure.'
3. Inflation is now not expected to fall back to its target until 2026, instead of the prior 2025 forecast.
4. The RBA Governor said she does not see interest rate cuts ahead.
For more read the RBA statement from today.
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My earlier commentary given to media before the ASX opened today
For my prior notes - see Jessica Amir's Profile Page - moomoo Community
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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151453268 witso : Little bit Rich for Bullock, to maintain her stance and ring as much money out of mortgagees as possible potentially driving them to the wall, when the problem is just as much there creation as the insane government . If we could slow down the bums on tax paying seats free hit economics current governments lazily adopt and actually help people business and industry to produce and prosper we remain the lucky country and get a fair go for much longer
