There is a very clear shift of the burden of taxation away from income and towards investment gains. The budget reduces the total size of the Government and the Government spending. As such, it will lean against inflation in a mild way – though many of the larger changes to taxation are not imminent and will, hopefully, be after inflation has already cooled.
With markets expecting further rate hikes from the Reserve Bank of Australia this year, in this piece we explore this monetary policy tool and why Central Banks use it to achieve inflation targets.
Indexed annuity bonds (IABs) offer protection against inflationary pressures, making them a crucial allocation during times of high inflation, but also offering many other benefits too. Here we discuss how they work and why they’re considered a core portfolio holding.
Controlling inflation is not just about controlling price rises, but also the expectations of future price rises. That’s what makes an oil price shock so dangerous for the RBA. They raised rates in March because of the war, in our view.
The Reserve Bank of Australia (RBA) raised rates last week as was broadly expected – but not everything they said was fully anticipated. They remain incredibly reticent to give guidance, emphasising the large range of possible outcomes for the next year. One more rise is quite likely, but this isn’t like the old cycles used to be. In this article we further discuss the RBA rate outlook.
Following the recent release of the FIIG Macro Outlook, here we discuss the RISE strategy and how best to construct a fixed income portfolio for the year ahead.
In this article we explore the key risks that might undermine the economy along with mitigants.
In this article we look at the current economic landscape and the outlook for the Reserve Bank of Australia (RBA).
IABs offer protection against inflationary pressures, making them a crucial allocation during times of high inflation, but also offering many other benefits too. Here we discuss how they work and why they’re considered a core portfolio holding.
This article uses some recent developments in the Australian market to demonstrate the point and to help investors consider when is the right time to buy fixed vs floating rate bond investments.