As wealth managers, we're constantly monitoring the evolving economic landscape. Recent data provides insights towards how we are positioning portfolio and asset allocation.
đ Key Points:
- Global trend towards monetary policy easing
- US Federal Reserve cut rates by 50bp, now at 4.75%-5.0%
- RBA holding steady at 4.35%, but easing expected by year-end
- Australian and US unemployment rates converging at 4.2%
đ Inflation Trends:
- US headline CPI: 2.5% (August)
- Australian headline CPI: 2.7% (August)
- Australian trimmed mean CPI: 3.4% (lowest in 2.5 years)
đ Global Context:
- 6 major central banks have lowered rates in 2024
- People's Bank of China implementing significant easing measures
- Global factors influencing individual countries' interest rates
đŠđș Australian Outlook:
- RBA expected to begin lowering cash rate before end of 2024
- Projected cash rate of 3.1% by end of 2025
- Consumer spending and labour market data crucial for policy decisions
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