Frontier market update – December 2023

In the December market update, Frontier Senior Consultant, Dr Shahana Mukherjee discusses the latest inflation rates and how this could impact the outlook for monetary policy. Inflation is moderating across most developed markets, including Australia, but the speed of the adjustment has varied. The annual inflation rate in Australia is higher, but this is also reflective of inflation peaking later in Australia compared to other countries, like the US.

Dr Shahana predicts that central banks will continue to maintain restrictive monetary conditions in the near term. Current market pricing suggests no further US policy rate increases and indicates slightly faster-paced rate cuts from around mid-2024. In comparison, market pricing for the cash rate indicates that the RBA will likely switch to cutting rates around the middle of 2024.

With Daman Grewal, Frontier’s Senior Relationship Manager.

Frontier Advisors provides asset consultancy services to the Trustee. The Trustee also engages Frontier Advisors to provide market and investments updates to members of First Super.

Frontier Advisors is responsible for the information in this presentation.