We see the RBA’s surprise decision to hold rates steady at its July meeting as “hedging” giving themselves more time to consider developments, having cut by 50bps since February. Seeing that the trimmed mean inflation rate is still within the Bank’s target range, and has not looked likely to “bound” outside it, it indicates that the market’s very-high expectations were likely a little ambitious.

Whilst no-one is sure where rates will go, Ark will continue to write responsible, well-researched loans at interest rates and on terms that reflect their risk. And, Bedrock will continue to invest in Ark Wholesale fund loans that meet the fund’s investment criteria and are in the interests of the unitholders.