Petrol price relief, three more rate hikes possible

Get caught up ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

Read in browser

Good morning. Today, the economic and financial fallout from the Iran war intensifies as the conflict endures. Interest rates in Australia could reach the highest since 2008, as the central bank continues to hike, according to the latest forecast from Westpac. The forecast shows how aggressively the RBA may have to act to stymie rising prices across the economy caused by higher energy costs as the Iran war grinds on. Still, fuel prices should come down from tomorrow, as the government temporarily cuts its tax on petrol. Meanwhile, Colonial First State is trying to get ahead of rising inflation by focusing on floating-rate debt, including private credit, which can partly insulate the portfolio from higher interest rates. — Richard Henderson, cross-asset reporter What's happening now Canberra is halving its tax on fuel to relieve the pressure of higher energy prices on consumers. The levy on gasoline and diesel will be cut by about 26 Australian cents ($0.18) per liter from Wednesday, Prime Minister Anthony Albanese said. Gasoline prices displayed at a Budget Petrol petrol station in Sydney on Wednesday, March 25. Photographer: Brent Lewin/Bloomberg The Reserve Bank of Australia will likely raise interest rates three more times this year to deal with rising inflation, according to the latest forecast from Westpac. Such a scenario would bring the RBA's benchmark rate to 4.85% — the highest since 2008 — and underscores the challenge to tame rising prices for the central bank. E-cigarettes are likely to cause cancer. That's among the findings of a sweeping review of scientific evidence published on Monday that challenges their positioning as a safer alternative to smoking. "Considering all the findings — from clinical monitoring, animal studies and mechanistic data — e-cigarettes are likely to cause lung cancer and oral cancer," said Bernard Stewart, a cancer researcher at Sydney's University of New South Wales, who led the study. Colonial First State is looking to floating-rate debt to fortify its A$179 billion portfolio from the prospect of slowing growth and rising inflation caused by higher energy prices. The firm may boost its allocation to private credit in particular, despite recent concerns about the asset class, according to Jonathan Armitage, chief investment officer. Australia and India are heading to the negotiating table. The two nations will explore a new trade agreement in the coming weeks, Trade Minister Don Farrell said Monday. Business between the two nations has increased since since a prior deal was struck in 2022, he noted. What happened overnight US equities did an about-face on Monday, deepening a selloff that spurred the longest weekly losing streak since 2022 amid fears of escalation in the war after more American troops arrived in Iran. US government bonds bounced in Monday trading after a slide fueled by concerns over the economic fallout of the war in Iran. The gains come as traders resume bets on a Federal Reserve rate cut in 2026. Australian equities are expected to open slightly higher. The US has threatened to attack critical civilian energy infrastructure in Iran unless Tehran re-opens the Strait of Hormuz. The latest escalation offers little reprieve for financial markets. The International Monetary Fund warned that the Iran war threatens a "global, yet asymmetric" shock, dimming the outlook for economies that were just recovering from previous crises. China's leading state-owned lenders reported anemic annual results for 2025, as a state-mandated push to support a flagging economy continued to erode industry profitability. Last week's crash at LaGuardia Airport may have bolstered the case for using AI in air control towers. Read more here about how AI is being tested in simulations in a mock control tower at Hong Kong International Airport here. A mock control tower at Hong Kong International Airport. Bloomberg Bloomberg And the 1953 Nissho Maru incident, in which a Japanese oil tanker dodged a British blockade to import Iranian oil, offers lessons for today's energy crisis, writes Bloomberg Opinion's David Fickling. What to watch • New Zealand ANZ Business Confidence (11:00 a.m. Sydney) • RBA Minutes of March Policy Meeting (11:00 a.m.) • Private Sector Credit (11:30 a.m.) One more thing... Photographer: Brent Lewin/Bloomberg Instagram is testing a new premium subscription that gives paying users access to exclusive features, part of an effort to build a reliable revenue stream outside of the company's core advertising business. The list of subscriber-only perks include several related to Instagram's Stories product, such as the ability to view another person's Story without them knowing. NEW: Explore live streaming news and interviews, documentaries, reporter analysis and more, all in one place. Check out Bloomberg.com/videos. Enjoying Australia Briefing? You might also like: Markets Daily for what's moving in stocks, bonds, FX and commodities Next China for dispatches from within the world's second-largest economy on where China stands now — and where it's going next Markets Daily India for key news and movers in this fast-growing market before the trading day starts Get weekly updates on these industries with our new Retail Monitor, Auto Monitor, Defense Monitor, Real Estate Monitor, Banking Monitor newsletters Explore all Bloomberg newsletters at Bloomberg.com. We're improving your newsletter experience and we'd love your feedback. If something looks off, help us fine-tune your experience by reporting it here. Follow us You received this message because you are subscribed to Bloomberg's Australia Briefing newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue New York, NY 10022 |