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title: "RBA hike today: what to say when members are about to act (poorly)"
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The RBA’s Michele Bullock raised rates today. This isn’t a member or investor education moment. It’s a guardrail moment.  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­    ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­  

| View in browser Friend, Here we go…    Like scared animals, we humans tend to act / react, rather than reflect, when we are afraid.     That action could wreck our financial future.    We know this. Behavioural finance has told us for decades.    So moments like this, matter more than most.    If you haven't been building member understanding (about markets and themselves) before now, you're behind but you CAN still be useful.    After today’s RBA rise, we can assume:   People under pressure often act from fear, not strategy  Some will get it right Many won’t  We've got a rate hike, an austerity budget in the wings, and b@tshit crazy geopolitics screwing up the world. So investors and people with super will be acting, or thinking seriously about it.    I reckon:  This isn’t an education moment It’s a guardrail moment  This is because pressure changes behaviour. Our losses feel sharper and our instinct is to do something, now.   That shows up as:  moving to cash cutting contributions stepping away from markets   Some of that is rational. Some isn’t.    Our job isn’t to stop action, it’s to stop unthinking action.   What good looks like: Reduce panic velocity Slow decisions down.    “These are the moments that can lead to big financial changes. It’s worth pausing before acting.”    This creates space between reaction and action.  Make consequences visible, lightly That might look like saying, “Moves like switching fully to cash or stopping contributions for extended periods can affect long-term balances.” Then maybe prove that with some long-term graphs.   (I hope you were doing this already!)  Preserve trust To sound real right now, drop anything that’s corporate, detached or complex. Speak to what’s real, e.g. costs are up, many households are feeling financial pain and markets do move.    Then remind us that:  Super is long-term by design. Time in, as well as timing, are factored in to our super. Short-term decisions can carry long-term cost.  If you’re brave, say the hard bit: people who act poorly in moments like this often regret it.    Before vs during    The best time to educate to change behaviour is before the stress when we can explain volatility, build market understanding and time horizon discipline. The goal then is to set expectations so investors are behaviourally resilient to cycles.    Now?    Our communication can simplify, guide and help prevent avoidable mistakes.    That’s the big test: whether your communication shapes behaviour.   Over to you.    PS Made it this far? Drop me a line with a question for a future BC Brief  Best, Carden \| she/her (here’s why that matters @work) Subscribe here On our radar: The other big story this week   RBA raises interest rates to 4.35pc as Chalmers blames war The Reserve Bank of Australia raised rates to 4.35% for the third time this year, citing inflation pressures worsened by Middle East oil shocks, while Treasurer Jim Chalmers blamed the war for driving up costs and squeezing the economy.   New homes to receive carve-outs from CGT and negative gearing changes The Albanese government’s upcoming budget will tighten negative gearing and scrap the 50% capital gains tax discount while exempting new homes to support housing supply and introducing a 30% minimum tax on trust distributions.    PM leaves door open to tax offset for workers as Coalition raises inflation concerns  The Albanese government is considering a $200–$300 tax offset for workers in next week’s budget as cost-of-living relief, while the Coalition warns it could add to inflation and is awaiting detail before responding.    Get to know your journo Michelle Bowes, Australian Financial Review Michelle Bowes has been promoted to Deputy Wealth Editor at the Australian Financial Review, where she covers all personal finance stories. With 25 years’ experience as a business journalist, she is also the author of Money Queens: Rule Your Money, an award-winning personal finance book for teenage girls.  Mark your diary Upcoming events you don't want to miss 19-20 May: SIAA 2026 Conference - Melbourne 27 May: Mining Summit 2026 - Perth 2 June: AI Summit 2026 - Sydney 16 June: Insurance Summit 2026 - Sydney This week's market movers Big plays, bold bets, and (occasional) unconfirmed speculation Regis Resources and Vault Minerals to merge in $10.7bn gold deal– Merger between Regis and Vault, creating third-largest primary ASX-listed gold producer, worth almost $11 billion.   Chemist Warehouse lands in London after buying into British chain– Sigma Healthcare is taking Chemist Warehouse into the UK via a 75% stake in Greenlight Healthcare.    NAB lifts provisions; Worley, Qube cut earnings due to Iran war– Middle East tensions are hitting Australian corporates, with National Australia Bank, Worley and Qube Holdings warning of earnings pressure.    What can we do better? Hit reply with one idea to improve your weekly brief. Want more financial services PR and marketing insights? Meet us below You're receiving Edition 35 of the BlueChip Brief. BlueChip Communication, Level 2, 50 Bridge Street, TWP, Quay Quarter Tower, Sydney, NSW 2000, Australia, 02 9018 8600 Manage preferences You’re receiving this email because you’ve previously subscribed, attended one of our events, are a client, friend of BlueChip or previously connected with us. Don’t want to be on this list? Unsubscribe here to opt out from this list or unsubscribe here to opt out from all email. |
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