FC Capital sees further RBA rate hike as Australian inflation stays elevated
SPY•FC Capital sees a further Reserve Bank of Australia rate hike as Australian headline inflation rose to 4.3% in September from 4% in August.
1. Inflation and rates
FC Capital said elevated Australian inflation could prompt a further Reserve Bank of Australia rate hike. Headline inflation rose to 4.3% in September, up from 4% in August, while the economy remained resilient.
2. AI debt concerns
The brief said investor confidence weakened in October 2026 over AI debt concerns, with CoreWeave credit default swap rates rising above 10%. Broadcom stepped in to ensure $63 billion in bank loans to Anthropic proceeded, further unsettling AI investors. Investors sought safety in U.S. government bonds, pushing yields lower after two months of increases.
3. Australian data centers
Australia’s data center sector faced setbacks from Firmus’s failed IPO and planning problems at NextDC.
