On June 18, the Reserve Bank of Australia (RBA) handed down their decision to leave the cash rate target on hold for the fourth consecutive meeting for 2024. Consistent with previous months, the Board reiterated that returning inflation to target remains the Bank’s priority. Continuing excess demand and elevated cost pressures were cited in the Bank’s commentary regarding persistent inflation, along with unsustainable wages growth, given trend productivity growth. The RBA also highlighted uncertainty in consumption growth, the lag between monetary policy adjustments and pricing decisions and the overseas outlook as key considerations.
Recent findings from various economic indicators, such as the NAB Monthly Business Survey, suggest that growth prospects for Q2 are unlikely to improve significantly. There is anticipation of increased economic activity in the second half of the year, supported in part by tax relief for households and other Government measures aimed at delivering cost-of-living relief. Importantly, both the tax cuts and other Government assistance could have inflationary effects. The duration of current restrictive interest rates remains uncertain, muddying predictions for when target inflation rates will be achieved and consequently, a cash rate decrease will eventuate. According to Australia’s top economic forecasters, the Reserve Bank is likely to start cutting interest rates by March next year. Though, the exact timing hinges on forthcoming economic data and recent higher-than expected inflation data clouds this prospect further. We will closely monitor market developments in the coming months, prioritising the best interests of our investors and stakeholders at Trilogy.
As we conclude the 2023/24 financial year, we are pleased to highlight the progress of our trusts during this period. The Trilogy Monthly Income Trust has grown by more than $100 million, increasing total funds under management (FUM) to over $750 million. Similarly, the Trilogy Industrial Property Trust has grown by over $30 million, reaching a AUM of $280 million1 at the close of the period1.
View the key macro-economic indicators from June 2024:
Key Economic Data
- Official Cash Rate: 35%
- GDP Growth Rate QoQ:1%
- Monthly CPI Indicator: 4% (3.6% in month prior) annualised
Consumer Sentiment
- Housing Credit MoM: 4% (0.5% in month prior)
- Private Sector Credit MoM: 4% (0.5% in month prior)
- Retail Sales MoM Prel: 6% (0.1% in month prior)
Housing and Construction
- Home Loans MoM: 3% (3.5% in month prior)
- Investment Lending for Homes: 6% (3.8% in month prior)
- Building Permits MoM Prel: 5% (1.9% in month prior)
- CoreLogic Dwelling Prices MoM: 7% (0.8% in month prior)
- Private House Approvals MoM Prel: 1% (-0.3% in month prior)
Labour Market
- Unemployment Rate: 4% (4.1% in month prior)
- Participation Rate: 8% (no change from month prior)
Trilogy solidifies its presence in Brisbane’s CBD
If you’re local to Brisbane, you may have noticed a new glistening light in the CBD’s skyline during your evening commute. We’re proud to officially unveil our name atop Brisbane’s iconic Gold Tower, which has been our home for over a decade. The installation coincided with our 25th year in business, marking a significant moment in solidifying our presence and commitment to Brisbane’s rich history.
As a Brisbane native, I’ve been fortunate to see our city evolve right before my eyes. I often call Trilogy ‘a part of the furniture’ in Brisbane’s CBD, and now that sentiment is reflected in our new signage on the Gold Tower. This landmark, standing 139.7 meters tall, has been a cornerstone of Brisbane’s Golden Triangle since its early days as the Queensland Investment Corporation headquarters.
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- As at 30 June 2024. Please note, past performance is not a reliable indicator of future performance.
This article is issued by Trilogy Funds Management Limited ABN 59 080 383 679 AFSL 261425 (Trilogy Funds) as responsible entity for the management investment schemes mentioned in this article. Application for investment can only be made on the application form accompanying the relevant Product Disclosure Statement (PDS) and by considering the Target Market Determination (TMD) available at www.trilogyfunds.com.au. The PDS contain full details of the terms and conditions of investment and should be read in full, particularly the risk section prior to lodging any application or making a further investment, together with the TMD. All investments, including those with Trilogy Funds, involve risk which can lead to no or lower than expected returns, or a loss of part or all of your capital. Trilogy Funds is licensed to provide only general financial product advice about its products and therefore recommends you seek personal advice on the suitability of this investment to your objectives, financial situation and needs from a licensed financial adviser. Investments with Trilogy are not bank deposits and are not government guaranteed. Past performance is not a reliable indicator of future performance.
