RBA Rate Hike Expectations Drive Sell-Off in Australian Share Market
- Reports
- 13
- Developments
- 2
- Repetition
- 85%
New informationRepeats or wire copies
What happened
The Australian share market is experiencing a sell-off as investors anticipate further interest rate increases from the Reserve Bank of Australia to combat persistent inflation. The Reserve Bank of Australia has already raised the cash rate three times this year to 4.35%. Market forecasts suggest a further 25 basis point rise to 4.60% at the upcoming meeting.
Why it matters
The Reserve Bank of Australia's tightening policy is responding to persistent inflation, which is reflected in rising input costs reported in preliminary September Purchasing Managers' Indexes. This policy shift is influencing market sentiment and expectations for future lending costs.
Who's involved
- Reserve Bank of AustraliaCentral bank of Australia setting monetary policy
- Michele BullockGovernor of the Reserve Bank of Australia
- Australian Bureau of StatisticsFederal statistics agency providing economic indicators to the Reserve Bank of Australia
- WestpacAustralian bank expected to face increased funding costs from rate hikes
- Commonwealth BankAustralian multinational bank expected to face increased funding costs from rate hikes
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- WestpacSpeculative
Rate hikes could increase funding costs and slow lending activity for Westpac.
- Commonwealth BankSpeculative
Rate hikes could increase funding costs and slow lending activity for Commonwealth Bank.
- Athena Home LoansSpeculative
Market conditions might affect the revenue of its parent company, REA Group.
How it developed
Newest first. Tap a step to see who reported it.RBA's tightening policy is affecting local market sentiment.1 source
RBA policy decisions are influencing the economic outlook based on market analysis.1 source
Keep exploring
The entities involved
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Reserve Bank of Australia
central bank of Australia
- The Reserve Bank of Australia is managing monetary policy while assessing how geopolitical risks in the Middle East, including conflict status and oil flow, affect the outlook for inflation and the potential benefits of a peace deal.
- Geopolitical peace deals are impacting oil prices due to the ongoing situation in the Middle East.
Related events
- NAB provides data to the RBA, highlighting how geopolitical tensions in the Middle East affect the Australian economic backdrop.
- The Reserve Bank of New Zealand and Reserve Bank of Australia are reacting to a global bond selloff, with HSBC providing economic analysis on the RBA's policy implications.
- The Reserve Bank of Australia maintains a cautious stance on monetary policy as shares trade in the Sydney market, impacting financial institutions like Commonwealth Bank.
- ABS reports on Australian economic data, showing GDP growth influences RBA policy amidst Middle East disruptions.
- The Reserve Bank of Australia is managing Australian borrowing costs and monitoring inflation data alongside the FED.
Coverage
Newest first; wire copies grouped- investinglive.com
- business-standard.com
- investinglive.com
- afr.com
- brokernews.com.au
- abc.net.au
- sbs.com.au
- switzer.com.au
- bankingday.com
- oberonreview.com.au
- smartpropertyinvestment.com.au