August was a notable month across financial markets, property and interest rates, with investors balancing resilient corporate earnings against renewed concerns around inflation, bond yields and geopolitical uncertainty. Australian and US share markets both recorded gains for the month, although volatility increased as expectations for the path of interest rates shifted. At home, housing conditions weakened further across most capital cities, while the Reserve Bank held the cash rate at 4.35% and maintained a clear focus on persistent inflation risks. In this month’s newsletter, we examine the key developments and consider what they may mean for investors, borrowers and households in the months ahead.