The Financial Engineer – Australian Equities Portfolio Strategy

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The market has positioned itself for rate rises by the RBA; bond rates and the $A have risen and interest-rate sensitive stocks have been hit. We see a rate rise from the RBA as unlikely this calendar year.  The latest CPI data showed inflation below the RBA’s target and the Australian economy faces more challenges from slowing housing construction and pressures on consumers from higher mortgage rates and electricity prices.

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