Invest
Rising CPI reinforces RBA’s stance as rate cut expectations remain: State Street
Invest
Rising CPI reinforces RBA’s stance as rate cut expectations remain: State Street
State Street Global Advisors says the Reserve Bank of Australia (RBA) is likely to hold its current policy outlook following the release of September quarter inflation data, which showed an unexpected uptick in underlying inflation.
Rising CPI reinforces RBA’s stance as rate cut expectations remain: State Street
State Street Global Advisors says the Reserve Bank of Australia (RBA) is likely to hold its current policy outlook following the release of September quarter inflation data, which showed an unexpected uptick in underlying inflation.
State Street Investment Management APAC economist Krishna Bhimavarapu said the latest Consumer Price Index (CPI) data “carried a sting in the tail for Q3”, as the trimmed mean CPI rose annually for the first time since December 2022, offsetting recent signs of softness in the labour market.
“Today’s CPI data carried a sting in the tail for Q3, as the trimmed mean CPI rose annually for the first time since December 2022,” Mr Bhimavarapu said.
“This more than offsets the impact of the recent rise in unemployment and provides enough justification for the RBA to maintain their outlook.”
He noted that the largest jump in property rates since 2014 was a key contributor to the rise in prices, alongside higher electricity and alcohol and tobacco costs.
“The largest jump in property rates since 2014 is worrying, but under the hood the jump was also led by electricity prices – muddied by subsidies and annual reviews. Alcohol and tobacco prices also contributed but, the drop in insurance premiums is significant and is quite welcome,” Mr Bhimavarapu said.
Despite persistent inflation pressures, Mr Bhimavarapu said the labour market’s weakness could prove more structural, warranting caution.
“Nevertheless, we continue to stress caution, as the increase in unemployment appears more structural—particularly against a challenging global backdrop. For this reason, we continue expecting one rate cut by December,” he said.
Economy
Financial pressures and the 'she'll be right' attitude delay Australian divorces
In a revealing study, the Real Cost of Separation Report 2026 by Real Insurance has uncovered a trend of 'quiet uncoupling' among Australians, with financial pressures and concerns for children ...Read more
Economy
Labour market resilience provides RBA room for manoeuvre, says State Street economist
In the wake of the latest Labour Force data release, State Street, a global leader in financial services with a staggering US$54.5 trillion in assets under custody and administration and US$5.5 ...Read more
Economy
Geopolitical tensions shape investor strategies in private markets
In the face of mounting geopolitical tensions, investors are honing their strategies in private markets, as revealed by the 44th edition of the Coller Capital Global Private Capital BarometerRead more
Economy
Ellerston sees investment shift as Middle East tensions ease and inflation persists
Amid signs of easing tensions in the Middle East with US-Iran peace negotiations progressing, albeit at a slower pace than desired by markets, investors are being advised to reevaluate their ...Read more
Economy
Global markets face stagflationary pressures amid rising inflation and diverging growth
In a recent macroeconomic report, the Franklin Templeton Fixed Income team has highlighted that global markets are increasingly encountering a stagflationary environment, characterised by intensifying ...Read more
Economy
Corporate capex provides solid footing for US equities, says ClearBridge
In a promising development for the US economy, corporate capital expenditures (capex) are playing a crucial role in supporting economic growth, according to Jeff Schulze, head of economic and market ...Read more
Economy
Brands turn to household care and laundry strategies to weather cost-of-living crisis
As the UK braces for a 13% hike in its energy price cap by July 2026 and US gas prices soar to a four-year high due to geopolitical tensions, the global spotlight is once again on the cost-of-living ...Read more
Economy
GDP data prompts State Street expert analysis on cash rate and trade surprises
In light of the latest GDP figures, State Street, a global leader in financial services with a staggering US$54.5 trillion in assets under custody and/or administration and US$5.5 trillion in assets ...Read more
Economy
Financial pressures and the 'she'll be right' attitude delay Australian divorces
In a revealing study, the Real Cost of Separation Report 2026 by Real Insurance has uncovered a trend of 'quiet uncoupling' among Australians, with financial pressures and concerns for children ...Read more
Economy
Labour market resilience provides RBA room for manoeuvre, says State Street economist
In the wake of the latest Labour Force data release, State Street, a global leader in financial services with a staggering US$54.5 trillion in assets under custody and administration and US$5.5 ...Read more
Economy
Geopolitical tensions shape investor strategies in private markets
In the face of mounting geopolitical tensions, investors are honing their strategies in private markets, as revealed by the 44th edition of the Coller Capital Global Private Capital BarometerRead more
Economy
Ellerston sees investment shift as Middle East tensions ease and inflation persists
Amid signs of easing tensions in the Middle East with US-Iran peace negotiations progressing, albeit at a slower pace than desired by markets, investors are being advised to reevaluate their ...Read more
Economy
Global markets face stagflationary pressures amid rising inflation and diverging growth
In a recent macroeconomic report, the Franklin Templeton Fixed Income team has highlighted that global markets are increasingly encountering a stagflationary environment, characterised by intensifying ...Read more
Economy
Corporate capex provides solid footing for US equities, says ClearBridge
In a promising development for the US economy, corporate capital expenditures (capex) are playing a crucial role in supporting economic growth, according to Jeff Schulze, head of economic and market ...Read more
Economy
Brands turn to household care and laundry strategies to weather cost-of-living crisis
As the UK braces for a 13% hike in its energy price cap by July 2026 and US gas prices soar to a four-year high due to geopolitical tensions, the global spotlight is once again on the cost-of-living ...Read more
Economy
GDP data prompts State Street expert analysis on cash rate and trade surprises
In light of the latest GDP figures, State Street, a global leader in financial services with a staggering US$54.5 trillion in assets under custody and/or administration and US$5.5 trillion in assets ...Read more