Australia

RBA needs to get it right today

RBA meeting today will be interesting as they desperately want to cut rates but should hike. CPI is way too high, in some measures almost double their target, and increasing alarmingly. GDP came in a little lighter than expected this week. The house price bubble keeps inflating despite lowering building activity.

Can’t help feeling that a wrong move here will be very costly. 10 year yields bear this out. Yield is approaching the highest since COVID, and a break higher still could be on the cards.