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Speaker 1: Now let's go to Caitlin Parker of Milford Esset Management.

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Speaker 2: Hy Katelin hik Harian.

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Speaker 1: Okay, I'm very well, thank you. Now we've got almost

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Speaker 1: three years of high interest rates. Are we starting to

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Speaker 1: see an acknowledgment do you think from the Reserve Bank

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Speaker 1: of the damage that this is causing the economy?

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Speaker 2: Yeah, looks preasingly we are so for the first time

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Speaker 2: this cycle. Today the orban zat they signal their intent

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Speaker 2: to create in the statement, and that was definitely a

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Speaker 2: pleasant surprise for the market because going in, you know,

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Speaker 2: most of us we did expect that the statement was

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Speaker 2: going to be pretty neutral since the Orbenz We're going

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Speaker 2: to actually say very little, and the market had been

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Speaker 2: expecting the Urban ved to specquitting rate later this year,

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Speaker 2: but no one is really expecting them to admit to

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Speaker 2: this today as such, and they will and truly did

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Speaker 2: let the cat out of the bag that they are

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Speaker 2: thinking about interest right cut. So this was a definite shift,

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Speaker 2: and some of the key points I suppose for me

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Speaker 2: was really the confidence that the orbanz have I mentioned

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Speaker 2: it I think twice in the statement, but they are

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Speaker 2: confident that inflation will go back to their one to

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Speaker 2: three percent target and then six months. And also the

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Speaker 2: Urbian said they did discuss that this height monetary policy,

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Speaker 2: these high interest rates that they're feeding through to domestic

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Speaker 2: demand more strongly than they expected, but very positively. There

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Speaker 2: was no mention of or any talk of another out

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Speaker 2: or hike in the statement today versus earlier in the

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Speaker 2: year when they tried to elude and come into the

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Speaker 2: market that potentially they would hike again if inflection remained

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Speaker 2: for a bust.

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Speaker 1: Yeah, and so what was the market reaction to the

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Speaker 1: Reserve Bank today?

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Speaker 2: Look, so market was expecting them to start cutting later

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Speaker 2: this year, and now they're expecting a larger quantum of

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Speaker 2: cuts and at a faster pace. So now putting about

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Speaker 2: a sixty percent probability that the orbans that will start

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Speaker 2: cutting in August versus later in the year. So we

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Speaker 2: thought interest rates putting lower immediately on the back of

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Speaker 2: that statement being released. So the two year interest rate,

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Speaker 2: which is an input into mortgage rates, that was down

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Speaker 2: abouero point two percent. Currency was also weaker, and share

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Speaker 2: market raleigh on the back of it a bit. So

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Speaker 2: it was received very well by the market, and I

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Speaker 2: would imagine that these moves will be somewhat extented that

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Speaker 2: the offshore markets come in and get involved overnight. So

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Speaker 2: the urbian zed they would have been well aware of

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Speaker 2: what this statement would have done and the market reaction

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Speaker 2: that would have been received at the market starting to

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Speaker 2: price in work. But so it won't be surprised at

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Speaker 2: Orbionzett how and markets have reacted.

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Speaker 1: Kaitlin. Always good to talk to you. Thank you so

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Speaker 1: much for the expertise. It's Kaitlyn Parker of Mills Fedesset Management.

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