Market insights

Financial markets traded weaker in June with the notable exception of the Chinese markets. The growing risk of recession down the track loomed large in June as high inflation prompted several big central bank rate hikes with the prospect of more to come and quickly to...

High inflation and central banks starting to front-load monetary policy in response brought the prospect of recession into sharper focus in June even though current data readings still show firm economic growth. Inflation is proving slow to peak challenging central...

Inflation running much higher than central banks expected previously is causing them to rethink the appropriate monetary policy response to tame inflation. Most, including the RBA, are admitting that demand growth is running faster than growth in supply of goods and...

The RBA’s decision last week to hike the cash rate by 50bps to 0.85% changes our earlier view that the RBA would be comparatively relaxed about Australia’s inflation outbreak and lift the cash rate gradually to a normal or neutral setting over the next two years....

Financial markets remained volatile in May torn between evidence of strong economic activity and concern that central bank interest rate hikes will dampen future activity and possibly lead to recession. Inflation and its many underpinnings are driving the likely...