Global markets were lower overnight, with the Tech sector outperforming as investors assessed changes to the Senate's version of a tax overhaul that could reduce gains for companies.
Closer to home, yesterday saw both the Reserve Bank of Australia and Reserve Bank of New Zealand make comments. The RBA kept interest rates on hold as Reserve Bank governor Philip Lowe reiterated "the low level of interest rates is continuing to support the Australian economy". We continue to forecast no change to rates in the near term.
A speech from the RBNZ also highlighted a new assumption that global inflation will stay lower for longer means it is more exposed to the risk of prices picking up, said Acting Governor Grant Spencer. "More recently we have been assuming greater persistence in low global inflation and this is contributing to our current flat track for future OCR levels". The RBNZ currently sees the official cash rate remaining at a record-low 1.75% until mi...
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