The RBA raised rates for the fourth consecutive meeting with a view to combat the soaring rate of inflation. They are not shying away from introducing additional rate rises moving forward. As noted last week, the headline inflation for the July quarter came in at 6. 1 per cent, well above the 2–3 per cent target range.

Since bravely declaring that inflation would be “transitory” the Chair of the U. S. Federal Reserve, Jerome Powell, has been ridiculed for being so wrong.   After all, we’ve since seen inflation exceed initial estimates and be more persistent than anticipated. But now it seems inflation could be transitory after all. And that augers well for quality growth stocks.

The Consumer Price Index data was released this week, recording the largest annual rise in inflation since the introduction of the Goods and Services Tax in 2000.