1. Vanguard says RBA move is ‘prudent’

Vanguard’s senior economist Alexis Gray said the RBA’s move to only raise interest rates by 0.25% is prudent given the risk of a policy overshoot.

“The RBA chose to slow the pace of rate hikes, acknowledging the bank’s desire to return inflation to target while keeping the economy on an even keel. This hints at the inherent trade-off the RBA now faces to tame inflation without knocking the economy into recession,” Ms Gray said.

“Indeed, the RBA discussed the pressure on household budgets and the bank’s desire to assess the outlook following six consecutive rate hikes. This is a prudent step in Vanguard’s view and will reduce the risk of a policy overshoot.”

2. Latest broker rating changes

4. Broker changes from Bloomberg:
• CBA raised to Neutral at Evans & Partners Pty Ltd; PT A$85
• NAB raised to Positive at Evans & Partners Pty Ltd; PT A$32
• IPH rated New Buy at UBS; PT A$11
• Pendal Group cut to Neutral at Jarden Securities; PT A$4.05
• Life360 GDRs rated New Buy at Goldman; PT A$7.50
• Ampol cut to Equal-Weight at Morgan Stanley; PT A$31.23

3. Best and worst over last 24 hrs

4. A severe weather warning is active for heavy rainfall across western NSW

A severe weather warning was active for heavy rainfall across New South Wales, northern Victoria and southern Queensland, bringing the renewed risk of flooding for parts of the east coast. More than 13,000 South Australians were left without power on Tuesday after damaging wind gusts of more than 80km/h were recorded. Record breaking rainfall could also be on the way for Sydney after 23mm fell Greystanes overnight on Tuesday and 21mm dropped in Prospect.

5. ASX futures up today

ASX futures up 107 points or 1.6 per cent to 6803 at 7am with the AUD -0.5% at US64.87¢

On Wall St: Dow +2.6% S&P 500 +2.6% Nasdaq +3.2%

Iron ore +0.2% to $US95.50 a tonne

Gold +1.5% at $US1725.50 an ounce