Close
Leave Feedback
Welcome to the new btim.com.auTake a two minute tour to see what we've changed
Hi there! Welcome to the new look Pendal website... Take a two minute tour to see what we’ve changed.
Mainstream Online Web Portal
LoginInvestors can view their accounts online via a secure web portal. After registering, you can access your account balances, periodical statements, tax statements, transaction histories and distribution statements / details.
Advisers will also have access to view their clients’ accounts online via the secure web portal.
What’s behind the RBA’s surprise rate hike
What’s behind the RBA’s surprise decision to lift rates – and what’s next? Here’s a snapshot from Pendal’s head of cash strategies, Steve Campbell
- Why bonds, why now? Find out more from our Income and Fixed Interest experts
THE Reserve Bank surprised most people – your scribe included – when they raised the cash rate today by 0.25 percentage points to 3.85%.
What was surprising was the RBA had revised down their forecast for 2023 from 4.75% to 4.5%, yet decided to tighten policy anyway.
In justifying the decision, the RBA noted that services inflation remained very high and the offshore experience indicated upside risks.
Productivity growth is anaemic, in turn exerting upward pressure on unit labour costs.
The strength of labour – with the unemployment rate at a 50-year low and most businesses struggling to find workers – only added to their concern.
Defending the decision to pause in April, the RBA said they held rates steady to provide additional time to assess the state of the economy and the outlook.
But they remained resolute in their determination to return inflation to target – and would do what was necessary to achieve that.
Why not go in April then?
Inflation is not forecast to be back in the target band before mid-2025 and the labour market is not cooling.
Wage inflation pressure may reduce in some sectors with the increase in migration.
But that brings a different type of price pressure, mainly via rental inflation.
Find out about
Pendal’s
cash funds
After the pause in April – and with the fixed rate mortgage cliff ever closer – I expected the RBA to wait and allow prior policy tightening to flow through the system.
I was wrong.
I doubt it’s a co-incidence that the RBA review released several weeks ago criticised the central bank for not getting inflation back to target quick enough.
Well, here is the response.
Previously I expected any policy change would occur more likely in a quarterly sequence following the release of quarterly inflation data.
That has gone out the window. Today’s decision means their next meeting in June is also a live meeting.
About Steve Campbell and Pendal’s Income and Fixed Interest team
Steve Campbell is Pendal’s head of cash strategies. With a background in cash and dealing, Steve brings more than 20 years of financial markets experience to our institutional managed cash portfolio.
Find out more about Pendal’s cash funds:
Short Term Income Securities Fund
Pendal Stable Cash Plus Fund
Pendal’s Income and Fixed Interest boutique is one of the most experienced and well-regarded fixed income teams in Australia.
This information has been prepared by Pendal Fund Services Limited (PFSL) ABN 13 161 249 332, AFSL No 431426 and is current at May 2, 2023. PFSL is the responsible entity and issuer of units in the Pendal Short Term Income Securities Fund (Fund) ARSN: 088 863 469. A product disclosure statement (PDS) is available for the Fund and can be obtained by calling 1300 346 821 or visiting www.pendalgroup.com. The Target Market Determination (TMD) for the Fund is available at www.pendalgroup.com/ddo. You should obtain and consider the PDS and the TMD before deciding whether to acquire, continue to hold or dispose of units in the Fund. An investment in the Fund or any of the funds referred to in this web page is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested. This information is for general purposes only, should not be considered as a comprehensive statement on any matter and should not be relied upon as such. It has been prepared without taking into account any recipient’s personal objectives, financial situation or needs. Because of this, recipients should, before acting on this information, consider its appropriateness having regard to their individual objectives, financial situation and needs. This information is not to be regarded as a securities recommendation. The information may contain material provided by third parties, is given in good faith and has been derived from sources believed to be accurate as at its issue date. While such material is published with necessary permission, and while all reasonable care has been taken to ensure that the information is complete and correct, to the maximum extent permitted by law neither PFSL nor any company in the Pendal group accepts any responsibility or liability for the accuracy or completeness of this information. Performance figures are calculated in accordance with the Financial Services Council (FSC) standards. Performance data (post-fee) assumes reinvestment of distributions and is calculated using exit prices, net of management costs. Performance data (pre-fee) is calculated by adding back management costs to the post-fee performance. Past performance is not a reliable indicator of future performance. Any projections are predictive only and should not be relied upon when making an investment decision or recommendation. Whilst we have used every effort to ensure that the assumptions on which the projections are based are reasonable, the projections may be based on incorrect assumptions or may not take into account known or unknown risks and uncertainties. The actual results may differ materially from these projections. For more information, please call Customer Relations on 1300 346 821 8am to 6pm (Sydney time) or visit our website www.pendalgroup.com
Keep updated
Sign up to receive the latest news and views