Perpetual expects RBA to raise rates 25 basis points, then pause tightening
- The RBA is expected to raise rates 25 basis points to 4.85% on November 3, then pause until at least February.
- Australian markets price in one and a quarter further 25-basis-point increases, with potential rate cuts in the second half of next year.
- The Nasdaq’s 9% decline from its October peak has lowered expected peak interest rates, outweighing rising oil prices in bond markets.
- AI investment is expected to remain substantial over the next few years, limiting scope for early or significant interest rate cuts.
- The Federal Reserve is expected to raise rates again in December, with elevated inflation keeping Australian and US rates higher for longer.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Perpetual Limited published the original content used to generate this news brief on November 02, 2026, and is solely responsible for the information contained therein.