Cash rate remains steady as RBA exercises caution
While payments have not increased, mortgage holders may be waiting a while yet before seeing a drop in rates
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The Reserve Bank of Australia decided to keep the cash rate on hold at its first meeting for 2024, as it takes a cautious approach to last week’s news on inflation.
In a statement released earlier today, the board said rates would remain at 4.35 percent with the interest rate paid on Exchange Settlement balances unchanged at 4.25 percent.
The announcement was widely expected, with most economists pointing to September as the likely date for a fall in rates to start. This is despite inflation slowing to 4.1 percent in December, a greater than expected drop.
“Inflation continued to ease in the December quarter,” the RBA Board said in a statement. “Despite this progress, inflation remains high at 4.1 percent. Goods price inflation was lower than the RBA’s November forecasts. It has continued to ease, reflecting the resolution of earlier global supply chain disruptions and a moderation in domestic demand for goods.
“Services price inflation, however, declined at a more gradual pace in line with the RBA’s earlier forecasts and remains high. This is consistent with continuing excess demand in the economy and strong domestic cost pressures, both for labour and non-labour inputs.”
Despite positive signs, the board maintained that the outlook is still ‘highly uncertain’ and indicated a desire to tread carefully over the coming months to achieve the board’s desired 2-3 percent inflation target by 2025.
Inflation remained ‘sticky’ for much of 2023, with the RBA announcing 13 rate rises in just over 12 months to try to drive it down to more acceptable levels. Today’s decision offers a reprieve to mortgage holders and reflects the board’s interest in directing inflation down over the longer term.
“The Board needs to be confident that inflation is moving sustainably towards the target range,” the board said. “To date, medium-term inflation expectations have been consistent with the inflation target and it is important that this remains the case.”
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With US$40 million already committed, the Global Talent Fund is attracting investor attention with a strategy focused on building globally scalable consumer brands alongside high-profile talent.
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A new investment fund targeting celebrity-founded consumer brands has secured US$40 million in commitments and is rapidly approaching its US$50 million fundraising target, signalling growing investor appetite for alternative opportunities beyond traditional asset classes.
The Global Talent Fund, which has a maximum raise of US$100 million, focuses on building and investing in consumer businesses alongside celebrities, athletes, and influential personalities who play an active role as co-founders rather than simply endorsing products.
The strategy is based on the belief that changes in consumer behaviour, particularly the rise of social media and digital engagement, have fundamentally altered how brands are built and scaled.
GTF founding partner Jeremy Hunt, who is helping lead the fund’s strategy, said consumers increasingly feel connected to personalities they follow online and are more willing to support products developed by those individuals.
“Consumers are searching for content to engage with, and when a celebrity they like or follow takes them on the journey of creating a product or brand, they genuinely feel part of that process,” he said.
The fund is targeting high-growth consumer sectors including wellness, hydration, beauty and recovery, areas Hunt believes continue to benefit from strong global demand and ongoing innovation.
Rather than backing celebrity endorsement deals, the fund is seeking businesses where talent is deeply involved in product development, brand creation and long-term growth.
According to Hunt, authenticity remains one of the biggest differentiators between successful celebrity-backed brands and those that fail.
“The consumer can see clearly if someone is simply being paid to promote a product,” he said. “The winners are typically the brands where the celebrity has genuinely helped build the business from the ground up.”
The model has attracted support from several prominent Australian investors and business families, reflecting broader interest in alternative investments with global growth potential.
Hunt said consumer brands offered a level of tangibility that many investors found appealing.
“Consumer brands are what we touch, feel, smell and taste every day,” he said. “Our investors understand the growth potential in the model, but they also want to be part of the journey.”
The fund’s rapid progress towards its fundraising target comes amid growing recognition that celebrity influence, when combined with strong commercial execution and scalable business models, can create significant enterprise value.
With several high-profile celebrity-founded businesses generating billion-dollar exits in recent years, supporters of the strategy believe the opportunity remains in its early stages.
For more information, contact marc@kanebridge.com.au
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