As at the 28 February 2023
Observations from February.....
After an upbeat start to the calendar year in January, Australian equities retreated last month.
As the company reporting season wrapped up, the difficulty in passing on rising costs shone through to earnings numbers.
The Reserve Bank of Australia lifted the cash rate for the ninth straight meeting, whilst further increases appear likely in the face of recent inflation readings.
The global economy has been surprising resilient, meaning that stronger demand and inflation pressures will likely persist. This is set to increase the time it takes to lower inflation back to target.
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