Expert commentary on RBA decision - Tiger Brokers CIO Brett Reynolds

Please see comments below from Brett Reynolds, Chief Investment Officer Tiger Brokers Australia, reacting to today's interest rate decision by the RBA and the current key drivers on the ASX. 

Brett is available for further comment or interview, please let me know how we can assist.

Attributable to Brett Reynolds, Chief Investment Officer at Tiger Brokers Australia:

“The high April inflation figure meant the RBA had to raise interest rates again to try to curb the inflation rate. It is highly likely that we’ll see at least one more rate rise this year. Employment and the participation rate remain historically high while inflation is not showing any signs of falling significantly. The incoming monetary policy board will see there is still a need to increase interest rates. 

“Food inflation is hurting many Australians, with it running at around 8 per cent. This is an incredibly high figure that everyone can see every time they go to the supermarket. 

“The rising interest rates will put further pressure on landlords, so this is likely to put pressure to lift rents even further. First home buyers will also continue to be impacted, their borrowing capacity will be further reduced. The housing market is yet to show any signs of cooling from these interest rate changes, making it tough for those looking to move into home ownership.

“The local Australian sharemarket is currently seeing low trading volumes, with reduced market activity causing this. Some of the best trading opportunities are currently overseas, particularly the US markets where tech stocks are performing strongly. Nvidia is soaring, Microsoft remains popular, while Google continues to attract plenty of interest. To protect and grow your wealth, now is a great time to look beyond the Australian market to invest.”

ENDS

Brett’s headshot is available here. 

Regards

Michael

Brett Reynolds

Chief Investment Officer of Tiger Brokers Australia Brett Reynolds has close to 30 years of financial market experience. He started his career at Goldman Sachs and rose through the ranks to become Senior Equity Trader, while also working in institutional derivatives sales at JBWere. 

Brett was also a Director at Headland Capital where he managed a private investment team before joining the team at Tiger Brokers Australia. He is passionate about investment markets and helping people grow their wealth through stock management.