Is Inflation Likely to Plateau or keep Rising?

The S&P/ASX 200 Accumulation index rose 6.9% in March strongly outperforming global shares which increased by 2.5% as measured by the MSCI World Index. Despite investors rush to increase bond yield forecasts and the terminal cash rate forecast the share market pushed higher driven by a strong performance in the commodity complex and the subsequent boost to the energy sector.

Following the 0.25% increase in the US Federal Funds rate, strong US economic data and higher energy and commodity prices fuelling higher inflation concerns, investors were rushing to increase their forecasts for both official interest rates and bond yields throughout the world. Central banks worldwide have been responding to inflationary pressures for months, and the Reserve Bank of Australia joined the chorus following the Bank’s monthly meeting.

Read More

Comments are closed.