RBA Preview 17-18 February 2025: A history-making meeting

The RBA will do something historically noteworthy this coming meeting, regardless of what they decide. Either they will deliver the first rate cut of the 2025 rate cutting cycle, or they will disappoint a market priced for cuts more severely than they ever have before. With the consumer side of the economy showing signs of strengthening following tax cuts and real wages rising, there are plenty of reasons to wait before delivering the rate cut, even if inflation has fallen materially. But the optics may not let the RBA wait. So does the RBA want a rate cut or a hard place?

FIIG Monthly Income Fund Performance - January 2025

The FIIG Monthly Income Fund returned 0.50% net of fees in January, outperforming the AusBond Bank Bill Benchmark by 0.11%. This brings total outperformance (net of fees) to 1.14% since the fund’s inception in October 2024.

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The Benefits of a Portfolio Review

FIIG’s Investment Strategy Team conduct a yearly Portfolio Review in addition to the ongoing consideration and assessments carried out by the Relationship Manager across the year.

Government Debt, Government Spending and the Economy

As we move into the Q3 GDP release, the December budget update season, and from there into a new US Presidency, we thought it would be useful to think about how Government spending interacts with economic growth and with bond markets.

A History of Australian Callable Bonds

A callable bond is a bond where the issuer has the right, but not the obligation, to buy back a bond at a certain point/s in its life at a specified price/s before the final maturity date.

The US decides - Massive changes on the way to a soft landing?

Donald Trump has won the US election. He will find the economy strong in some ways with unemployment low and inflation falling, but he will also face a large deficit that will – or perhaps should - curtail plans for large tax cuts or large spending initiatives.

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