Australian Bonds Look Vulnerable to RBA’s Softer Bias, Auld Says
- RBA may find next year it has ‘more work to do’ on inflation
- Auld also sees Aussie dollar struggling to breach 75 US cents
Sally Auld
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Australian financial assets including bonds are in danger of underperforming in 2023 as the Reserve Bank’s softer approach to tackling inflation may backfire, said Sally Auld, chief investment officer at JBWere Ltd.
“The risk that they’ve been running all along is that that they can have their cake and eat it too,” Auld said, referring to the RBA’s decision to downshift the pace of interest rate hikes to try to preserve job gains while fighting inflation.