Markets15 May 20225 min read
May 2022: liftoff — the first RBA hike since 2010
On 3 May 2022 the RBA hiked 25bps to 0.35%. The Labor election victory followed on 21 May. Two structural changes inside three weeks.
Market reaction
CoreLogic's national index posted –0.1% for May — the first monthly fall since September 2020. Sydney led the downside at –1.0%. The peak-to-trough call had been made.
What I said on air
Sky News asked if this was a crash. My answer: this is a re-pricing of the cost of money, not a crash of the asset. The 2022–23 drawdown was always going to be sharp and shallow — sharp because the rate move was the fastest in a generation, shallow because supply remained 25–30% below trend.
Dax Stanley
Founder & Principal Strategist, Hera Property. #1 international bestselling author of Real Estate Investing Using ChatGPT.