A relief rally in the stockmarket and favourable moves in interest rate futures are strong indicators that the markets view the Reserve Bank of Australia’s latest moves as dovish.and reassuring comments by governor Philip Lowe triggered the positive market response.
House prices have a long way to fall before there would be material concerns within the walls of the central bank given the 30 to 40 per cent rise leading up to the inflation break-out.Expectations of falling house prices lead to a self-fulfilling philosophy as buyers hold back, auction clearance rates plummet and sellers are forced to withdraw.
The recent retracement of extreme movements in June 2023 bond futures is a welcome recognition that the RBA is not going to go too hard on rate increases.
Lol. *GOV gives ANOTHER $100Million to Ukraine, RBA is the problem.