The ASX200 ended the day slightly higher, up 23.3 points or 0.3% to 7,973.8, after trimming its morning gains. The market was led higher by Tech stocks which gained 2.3% and Real Estate was up 1.7%.
The Energy sector didn’t fare so well, losing 4%. This comes amid declining global oil prices and downgrades for energy majors Woodside and Santos added to the pressure. Woodside lost 6.8% to $25.10, although it is trading ex-dividend, while Santos lost 0.99% $to 7.
Reserve Bank of Australia governor Michele Bullock has warned some homeowners may have to sell their homes to stay afloat if inflation remained above the RBA’s target range.
Speaking at an Anika Foundation fundraiser in Sydney on Thursday, Bullock said, “I understand why people would think that as things are slowing that should be a reason to lower interest rates but we need to see the results in inflation before we can do that.".
“While the numbers are not large enough to pose a material risk to the stability of the financial system, it would have a material impact on those households who end up in this situation,” she said.
Bullock reiterated that talk of rate relief was premature and said while growth had slowed, it was still broadly aligned with the central bank’s forecasts — effectively ruling out a pre-Christmas cut.
She said, “Circumstances may change, of course … but if the economy evolves broadly as anticipated, the board does not expect it will be in a position to cut rates in the near term.”
Rather, Bullock warned that interest rates may have to go higher still if inflation fails to return to the RBA’s 2% to 3% target band.
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