Australia’s Reserve Bank has become less forceful with its interest rate policy, pausing the cycle in April, raising by 0.25% increments in May and June, then pausing again in July.

2022 was a momentous year for Joseph Palmer & Sons, as we celebrated our 150th year, moved office, and contended with elevated financial market volatility and a rapid increase in interest rates.

Economic trends and geopolitical events converged pessimistically in the June quarter, causing the unusual scenario where all major investment asset classes – shares, property, and bonds – fell concurrently. 

Bonds prices were particularly weak, due to the sudden and rapid increase in duration-based interest rates.   It was the combination of starkly increasing inflation and an about-turn by Central Banks’ monetary policies that caused the bond rout.