Both Australian and global share markets managed to inch forward last week, with weaker consumer spending in the US spurring on hope for eventual rate cuts, while locals markets rebounded from the 1.7% sell-off the previous week.

The highlight last week was the RBA meeting and press conference by Governor Bullock. While rates were left on hold, the tone of the meeting suggested that the RBA was becoming increasingly uncomfortable about the levelling out in annual inflation in recent months (inflation needs to be lower).

At the end of the day, if inflation remains stubborn, or ticks-up too much, the RBA may feel the need to raise interest rates yet again, as early as August.

More to come.

Rick Maggi