What's pressuring the ASX 200?
Investors, mortgage holders, and many other Aussies have been holding their breath in hopes that the Reserve Bank of Australia (RBA) will cut the official interest rate from the current 4.35% after hiking 13 times since May 2022.
But May's inflation print looks to have not only pushed any potential interest rate cuts into 2025 but also may have opened the door to another RBA rate hike. And that's not what ASX 200 investors were hoping to hear.
Consensus forecasts were for Aussie inflation to reach 3.8% on an annualised basis, up from 3.6% in April.
National Australia Bank Ltd was slightly more optimistic, earlier this week forecasting a 3.6% year-on-year inflation increase.
Unfortunately, as you can guess by the big drop in the ASX 200, the data surprised to the upside.
According to the latest data from the ABS, the monthly CPI indicator rose 4.0% in the 12 months to May. $National Australia Bank Ltd(NAB.AU$ $S&P/ASX 200(.XJO.AU$
But May's inflation print looks to have not only pushed any potential interest rate cuts into 2025 but also may have opened the door to another RBA rate hike. And that's not what ASX 200 investors were hoping to hear.
Consensus forecasts were for Aussie inflation to reach 3.8% on an annualised basis, up from 3.6% in April.
National Australia Bank Ltd was slightly more optimistic, earlier this week forecasting a 3.6% year-on-year inflation increase.
Unfortunately, as you can guess by the big drop in the ASX 200, the data surprised to the upside.
According to the latest data from the ABS, the monthly CPI indicator rose 4.0% in the 12 months to May. $National Australia Bank Ltd(NAB.AU$ $S&P/ASX 200(.XJO.AU$
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151773959 : Essentially it's ALP who's pressuring ASX 200, Australians are reaping what they sowed back in 2022