1. RBA lifts cash rate 50bps to 2.35%
The Reserve Bank of Australia (RBA) has increased the official interest rate by 50 basis points for a fourth consecutive month, taking the cash rate to 2.35%.

The increase was largely expected by financial markets and economists.

In its statement, the RBA flagged that there are more rate rises to come.

“The board expects to increase interest rates further over the months ahead, but it is not on a pre-set path,” said RBA governor Philip Lowe.

“The size and timing of future interest rate increases will be guided by the incoming data and the Board’s assessment of the outlook for inflation and the labour market. The Board is committed to doing what is necessary to ensure that inflation in Australia returns to target over time.”

The RBA said its central forecast is for consumer price inflation to be about 7.75% over 2022, a little above 4% over 2023 and about 3% over 2024. (AFR)

2. Solomon Islands PM to visit Australia in October
Solomon Islands Prime Minister Manasseh Sogavare will visit Australia in October, Anthony Albanese says.

“Sogavare has accused Australia of foreign interference for its offer to fund the Solomon Islands election. Responding to the comments, Albanese told reporters Australia wanted good relations with Solomon Islands and all Pacific Nations,” the AFR reports.

“I’m very much looking forward to hosting Prime Minister Sogavare. I’ll be hosting him at the Lodge for dinner in just a few weeks’ time in October,” Albanese said.

3. What’s bathroom tiles got to do with Europe’s energy crisis?
While Chanticleer columnist for the AFR, James Thomson does acknowledge bathroom tiles are a somewhat removed and “silly example”, a shortage of specific goods such as these could be the signifier of what pain is to come for not only Europe but the globe, in its ever-increasing energy crisis.

Thompson asks: “Why bathroom tiles? Well, Spain is the world’s fifth-largest producer of ceramic kitchen and bathroom tiles, and last week Spanish media reported that a large tile producer had shut down due to the explosion in energy prices.

“According to Bloomberg’s energy guru, Javier Blas, the cost of turning clay into a ceramic tile has soared 1047 per cent over the past 12 months – and now there will be fewer of them coming out of Spain.”

And Thompson notes that while it could be bathroom tiles today, the knock-on effects of European energy shortages will be felt across various sectors soon enough.

“This crisis appears certain to get worse given Russian gas giant Gazprom’s announcement [on Monday] that gas flows to Europe via the Nord Stream 1 pipeline would be halted indefinitely, after earlier suggesting flows would halt for a few days for maintenance,” Thompson adds.

4. Big market movers over the last 24 hours

5. ASX to slip
ASX futures were down 40 points or 0.6% to 6777 near 6.30am AEST, with the AUD -0.9% to 67.34 US cents.

On Wall St: Dow -0.6% S&P 500 -0.4% Nasdaq -0.7%.

In Europe: Stoxx 50 +0.3% FTSE +0.2% CAC +0.2% DAX +0.9%.

Brent crude -3.5% to $US92.38 a barrel.

10-year yield: US 3.35% Australia 3.64%.