Business Daily Media

RBA pause - investors to back tech growth stocks

  • Written by Dylan Zhang

“Today’s pause comes as welcome news to investors, but it’s unlikely this will be the last hike of the cycle. Rather than signalling that the inflation fight is over, this pause buys the RBA time to assess the upcoming quarterly CPI data on April 25 and the full impact of the banking crisis in Europe and the US.


Last week’s monthly CPI came out below expectations at 6.8%, and while inflation appears to have peaked, this is still above the target band of 2-3%. Inflation is cooling, but there’s more work needed to prevent it becoming entrenched. That said, it appears the RBA expects credit conditions to tighten due to the pressure on global banks, which could shorten the hiking cycle and lower the terminal cash rate.


Given how the RBA’s peers in the U.S. and U.K. lifted rates in recent months, today's move may be seen as a sign of fragility in the Australian economy, potentially leading to a weaker Australian dollar and subsequent inflationary pressure from imports and energy prices. However, Australia is particularly sensitive to rates due to a high percentage of people on variable mortgages, so hikes may have a bigger impact when compared to other markets. 


Following this announcement, investors will be watching the impact of the OPEC+ production cuts and China’s recovery, which are causing the price of oil to surge, potentially leading to higher costs across transport, food, and travel. Given the uncertainty over recent weeks, we’ve seen investors on Stake increase their allocation to passive index funds and gold ETFs. But as the pace of rate hikes appears to be slowing, it’s likely we’ll see more investors moving back into tech growth stocks.”


Dylan Zhang, ASX Equities Analyst at online brokerage platform, Stake

Maximising Your Return on Investment: A Comprehensive Guide to Evaluating Granny Flats

Granny flats, defined as self-contained secondary dwellings on a property, offer a unique investment opportunity for homeowners. They've gained qu...

Property

Price Analysis of Pacific Palisades Houses

Pacific Palisades is a highly sought-after neighborhood located in the Westside of Los Angeles, California. With its pristine beaches, lush parks...

Property

Estimating The Value Of Your Property

Property value estimator A property value estimator is a tool that can be used to estimate the value of a property. There are a number of differe...

Property

Roxanne Kiely revolutionising learning for children

21st century parents are often confronted with aggressive and selfish behaviour in all aspects of society and increasingly in children’s media, such a...

Business Training

5 BENEFITS OF USING HIGH-QUALITY HEADPHONES

We all know how colorless life can be without the audio in it. And with the broad range of digital media that surrounds us wherever we go, we all ne...

Business Training

The age of uncertainty: How interesting times are making life tough for property pundits in 2023

Given the abundance of unknowns, predicting how and when the market will move has become a mug’s game. Anyone else tired of speculating about w...

Property