Inflation isn’t under control and the RBA still has work to do, argues Oliver Ge, an assistant portfolio manager with Pendal's income and fixed interest team

“I think at 4.1% we're still at least a couple of hikes away,” says Oliver in our latest fast podcast.

Oliver points to three things blunting the impact of rate rises:

“Firstly, the Australian economy is demonstrating a level of resilience that's greatly surpassed most expectations.

“Secondly, there seems to be a wage-price spiral in certain aspects of inflation that continues to channel within the CPI basket, so it persists at a level that warrants concern.

“Thirdly, despite market chatter about the potential fallout from high interest rates – particularly for mortgage holders – our analysis shows that Australians, on aggregate, aren't as vulnerable as one might assume.”

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Find out more about Pendal's fixed income strategies at pend.al/fixedinterest

Pendal is an Australian asset manager and part of the global Perpetual Group. Find out more at pendalgroup.com

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