Note from the CEO
Global markets are on tenterhooks ahead of the release of the US Federal Open Market Committee’s latest interest rate decision, due early Thursday morning (Australian time).
A third consecutive rate hike of 75 basis points above the current target range of 2.25% to 2.50% is widely predicted, but it’s possible an inflation-panicked Fed will instead opt for a full 100-basis-point leap – something that hasn’t happened since the 1980s.
Whatever the outcome of the meeting, most leading economists now expect the US central bank to lift its benchmark policy rate above 4% and then hold it there beyond 2023, according to a survey published this week in the London Financial Times.
And many observers – including ANZ Bank – believe the rate will peak at 5% or higher, i.e. double its current level.
In Australia, some economists are already predicting that the Reserve Bank of Australia will be forced to start slashing rates as early as next year to stave off recession. However, the RBA’s options will be limited if the Fed is still moving aggressively in the opposite direction. Click here to read the full CEO note.
Historically, the healthcare sector has proven to be largely immune to recession. For example, demand in the sector’s biggest market, the global US$280 billion oncology industry (as at 2021), is predominantly driven by the demand for therapies and the rapid innovation that is happening in the field right now.
We have an upcoming webinar with a company that is helping move the cancer conversation from ‘fight’ towards ‘cure’. Prescient Therapeutics Limited (ASX: PTX) is a biotech innovator that will be unveiling the second component of the CellPryme cell therapy enhancement platform, CellPryme-A, at the prestigious CAR-TCR Summit in Boston this week.
On Tuesday, 27th September at 12pm (AEST), we will be joined by Prescient’s CEO Steven Yatomi-Clarke and Senior VP Dr Rebecca Lim for what we think will be a fascinating conversation for potential investors. Click here to attend.
Patrick Nelson
Managing Director
Reach Markets