Possible scenario
RBA Tightening Extends
40% Chance
The inflation miss reinforces the Reserve Bank of Australia's warning that underlying price pressures remain too high. Markets price a greater chance of another 25 basis-point hike, with rate-sensitive equities and housing-linked assets under pressure.
Initial impacts
- Riskier companies' borrowing costs Up
- Market volatility Up
- 10-year Treasury yield Up
Secondary impacts
- Consumer Cyclicals -1.0%
- Finance -0.8%
- Technology -0.5%
Portfolio impact
S&P 500-0.5%
Each figure is the modeled move of the S&P 500 if the outcome occurs. For information only. Not investment advice.
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