TLDR: It’s all about the political and economic fallout of high inflation and higher interest rates this morning. The Reserve Bank of Australia surprised markets and unsettled the governing Liberal/National coalition last night by hiking its cash rate for the first time in 11 years, and by more than expected just 18 days ahead of Australia’s federal election.
Here, the cost of living crisis has pushed National further ahead in the polls.
Elsewhere in the news this morning:
two opinion polls out late yesterday show National building a hefty lead over Labour and PM Jacinda Ardern falling even more in popularity;
global dairy prices fell by the most since 2015 overnight, extending losses seen over the last six weeks as Chinese buyers hampered by Covid supply chain issues pull back from markets; and,
watch out later today for the Reserve Bank’s half-yearly Financial Stability Report news conference at 11am where I’ll be able to ask Governor Adrian Orr a few questions.
I welcome questions and lines of inquiry from paid subscribers, who are able to comment below. I’ve also included my commentary on yesterday’s fiscal rules announcement in the podcast above for paid subscribers, with the potential still there for National to sign up to them.
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