Continued better than expected economic news saw equity markets move higher in July. Global shares as represented by the MSCI returned 3.29% in Australian dollar terms whilst the Australian share market as represented by the ASX 200 finished 2.88% higher. The Reserve Bank (RBA) left the official cash rate unchanged at 4.10% for the second consecutive month in July despite recognising headline inflation is still too high at 6.0%. The board decided to let the cumulative interest rate hikes of 4% since May 2022 work their way through the economy and so allow time for a more sustainable balance between supply and demand to re-establish itself following the opening of the economy post Covid. According to the Reserve Bank governor, the below-trend economic growth “is expected to continue for a while” with “household consumption weak, as is dwelling investment.” (Please find the link below to read the full article)