![RBA boss Philip Lowe has highlighted the importance of this week's inflation figures.](/web/20161024044240im_/http://www.smh.com.au/content/dam/images/g/s/5/6/i/c/image.related.landscape.460x307.gs8k9c.png/1477213670406.jpg)
Key week ahead for rates and dividends
The coming days carry crucial tests for the new RBA governor and bank shareholders as quarterly inflation figures are released and NAB reports it annual profits.
Patrick Commins writes on Markets specialising in Equity Markets, Currencies, Debt Markets. Based in our Sydney newsroom, Patrick is Markets deputy editor and has over six years experience as a journalist.
The coming days carry crucial tests for the new RBA governor and bank shareholders as quarterly inflation figures are released and NAB reports it annual profits.
The outlook for global inflation is on the turn, but economists are more worried that CPI figures this week might force the RBA into cutting rates again.
A marginal decline for the ASX over the week masked some vicious share price moves.
The world has changed to the point where low rather than high inflation is the primary concern and the US Fed risks "particularly high social costs" if it underestimates the new reality and raises rates too far and too fast.
Investors are likely to stay cautious and markets volatile ahead of crucial meetings from the US and Japanese central banks later this week.
The BoJ meeting on Wednesday even promises to eclipse the usually pre-eminent market event: a US rates decision early Thursday morning.
The local sharemarket posted its first gain in five sessions, but investors warn markets are likely to remain volatile.
There may be more pain to come, but rather than indiscriminately selling now, investors would be best served digesting the lessons of a sharp reversal in bond yields and what that might mean for their portfolios.
Australian shareholders will enjoy a $24 billion dividend bonanza over the coming months, as a record nine in 10 of top ASX-listed companies reward their investors with a payment.
Shares ease and the Aussie dollar firms as RBA holds rates held steady.
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