The Reserve Bank of Australia raised rates once again on Tuesday by a further 25bps to 3.60 per cent.
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The increase was its 10th consecutive hike which now puts the central bank's benchmark interest rate at an 11-year high.
RBA Governor Philip Lowe outlined in his statement that "the board's priority is to return inflation to target. High inflation makes life difficult for people and damages the functioning of the economy".
While he did reassure investors that goods price inflation is expected to moderate over the months ahead, services price inflation remains high and is likely to be far more sticky than other sectors.
The governor did also outline that growth in Australia is slowing, with GDP increasing by only 0.5pc in the December quarter.
Almost all major international indices were up last week, with Friday's session finishing particularly strong. Hong Kong's Hang Seng Index finished the highest up 2.79pc over the week, with the NASDAQ close behind, closing 2.58pc with a 1.97pc rally on Friday alone.
Both European and Asian stocks also saw decent gains contrasted with a small down week for both the ASX200 and NZX 50, which finished -0.32pc and -0.31pc.
Commodity prices saw gains across the board, bar a small fall in iron ore prices and a 9.70pc drop in the price of thermal coal. Of the commodities to rally, West Texas Intermediate (WTI) oil saw the largest gain as it finished 4.40pc higher over the week.
In equity markets, the software giant Salesforce Inc rallied 11.5pc on Thursday last week after the company's fourth-quarter results and full-year forecast were both better than what the market expected.
The Ford Motor Co saw strong returns last week, closing on Friday up 4.2pc after it stated that the manufacturing of its new all-electric F-150 Lightning will triple this year.
Major US data is set to be released this coming Friday, where investors will be watching for any difference between market expectations and US non-farm payrolls, unemployment rate and average hourly earnings.
Each one of these data points is likely to play a major role in the Federal Reserve's decision on future interest rate rises in the coming months.
- This article does not take into account the investment objectives, financial situation or particular needs of any particular person. Before acting on any advice contained in this article, you should assess whether it is appropriate in light of your own financial circumstances or contact your financial adviser. Christopher Hindmarsh is an adviser at JBWere Limited. JBWere Limited AFSL 341162.
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