Working out whether your superannuation is on track depends entirely on your current age and what type of retirement you’re aiming for.

A comfortable retirement, which is defined as allowing retirees to maintain a good standard of living, is expected to cost approximately $54,840 per year for individuals and $77,375 per year for couples.

To support that retirement lifestyle, ASFA estimates that Australians need a super balance of roughly $630,000 as a single and $730,000 as a couple by age 67. 

The figures also assume you own your home outright and that you’re receiving the age pension.

Is my superannuation on track?

Using ASFA’s calculator, I’ve crunched the numbers and worked out what superannuation balance you need to stay on track for a comfortable retirement.

At age 40, you should have close to $178,000 in superannuation. This needs to climb to $239,000 by age 45.

At age 50, you should have close to $313,500 in superannuation and by age 55, it should be closer to $399,000 in superannuation.

At age 60, you should have close to $496,500 in superannuation. This needs to hike to $604,500 in superannuation by age 65 in order to remain on track.

Help! I’m behind. What do I do now? 

If your superannuation balance is lower than what you should have at your age, you’re not alone. And there are things you can do to catch up before it’s too late.

The easiest way to get back on track is by reviewing your current superannuation fund. Is your fund performing well and in line with market expectations or a benchmark such as the S&P/ASX 200 Index (ASX: XJO)? The difference between a poor-performing fund and a top-performing one can be the difference between scraping by in retirement and living comfortably. 

Then check that your fund’s risk appetite aligns with your own. Putting your money into the wrong type of fund can quickly chip away at your balance. It makes sense to be conservative later on in life when you’re approaching retirement, but being too conservative too early means you’ll lose out on the potential for more growth. 

Next, you need to add extra concessional or non-concessional contributions, whether by salary sacrificing or after-tax contributions (within your annual limits). There’s no sense adding money to your superannuation fund if it means you’ll struggle to make it to payday. But the power of compounding returns means that the more money you can invest when you’re younger, the more impact it will have on your final balance.

Lastly, take advantage of any government initiatives available to you. There’s the downsizer contributions rule, the bring-forward rule, the government co-contribution rule, and many others. These can help boost your balance just a little bit further. 

The post Is your superannuation on track? Here’s what to do if you’re falling behind appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The rare earths industry has been booming over the past 12 months because of strong demand and tight supply.

The good news is that these conditions are expected to remain for the foreseeable future, which could make it worth having some exposure to ASX rare earths stocks.

The team at Wilsons has been looking at this side of the market and is feeling very positive. It said:

The rare earth market is benefiting from a powerful combination of structural demand growth, constrained supply and increasing policy support for ex-China supply chains. These dynamics are expected to support elevated rare earth prices while also strengthening demand for, and the pricing outcomes of, Western supply in particular.

But which shares could be buys for rare earths exposure? Let’s take a look at three that Canaccord Genuity is bullish on, courtesy of Wilsons. They are as follows:

Brazilian Rare Earths Ltd (ASX: BRE)

Canaccord Genuity thinks investors with a high tolerance for risk should look at this rare earths developer.

It has put a speculative buy rating and $8.00 price target on this Brazil-focused ASX rare earths stock. Based on its current share price of $4.70, this implies potential upside of 70% for investors over the next 12 months. It said:

Highest grades we have come across at the Monte Alto discovery in Brazil – partnership with Carester, upcoming Resource/ Scoping for integrated oxide production + bauxite spinout offer potential catalysts.

Iluka Resources Ltd (ASX: ILU)

Another ASX rare earths stock that is highly rated is Iluka. Although its mineral sands business is weighing on its performance, its exposure to rare earths with the Eneabba project is seen as a reason to buy.

Canaccord Genuity has a buy rating and $6.55 price target. However, this is largely in line with where its shares currently trade.

Commenting on the stock, the broker said:

Mineral sands business suffering from structural issues, but Eneabba provides medium-term exposure + a possible beneficiary of Australian Critical Minerals Reserve floor pricing.

Meteoric Resources NL (ASX: MEI)

A final ASX rare earths stock that gets the thumbs up from the broker is Meteoric Resources.

Canaccord Genuity has put a speculative buy rating and 40 cents price target on its shares. This is more than double its current share price.

Commenting on the Brazil-based developer, it said:

Low capex/low cost IAC development project in Brazil approaching major milestones (BFS/approvals/ funding/FID) in mid’26.

The post Top broker names 3 ASX rare earths stocks to buy appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Hitting your first $100,000 in retirement savings is a big milestone.

But the next goal, reaching $1 million, can feel a lot further away.

The good news is that once you’ve built that initial base, the process often becomes easier. Compounding starts to do more of the heavy lifting, and small improvements in your strategy can make a meaningful difference over time.

Here’s how I’d think about turning $100,000 into $1 million.

1. Let compounding do the heavy lifting

If there’s one concept that matters more than anything else, it’s compounding.

Once you have $100,000 invested, your money can start generating returns on top of returns.

For example, if you were able to achieve an average return of 9% per year, that $100,000 would grow to around $560,000 over 20 years without adding another dollar.

That still falls short of the $1 million retirement portfolio target, but it highlights just how quickly your money can grow.

In my view, the key here is staying invested. Trying to time the market or jumping in and out of positions can disrupt compounding and make the journey much harder.

2. Add consistently over time

Compounding works best when it’s paired with regular contributions.

Even modest additions can have a big impact when combined with long-term returns.

Let’s say you added $1,000 per month and earned that same 9% return. Over 20 years, your portfolio could grow beyond $1 million.

In fact, it would take a total of 18 years to reach our retirement target.

That’s the combination that tends to deliver results over time. A solid starting base, consistent contributions, and time.

It’s also a strategy that removes the pressure to pick the perfect stock. Instead, you’re steadily building wealth regardless of short-term market movements.

3. Focus on quality investments

The returns you earn matter.

While no returns are guaranteed, investing in high-quality ASX shares or broad-based exchange-traded funds (ETFs) can improve your chances of achieving strong long-term returns.

That might include market-leading companies with durable earnings, businesses that can grow over time, and diversified ETFs that track large sections of the market.

Examples include Commonwealth Bank of Australia (ASX: CBA), ResMed Inc (ASX: RMD), Macquarie Group Ltd (ASX: MQG), and iShares S&P 500 ETF (ASX: IVV).

The goal isn’t to chase the highest possible return. It’s to find investments you can hold through cycles without feeling the need to sell.

In my experience, consistency beats complexity here.

Bringing it all together

Building a $1 million retirement portfolio from $100,000 isn’t about one big decision. It’s about a combination of time, discipline, and a simple plan.

Compounding gets you started. Contributions keep you moving forward. And quality investments help you stay on track.

Miss one of those, and the journey becomes harder. Get all three working together, and the path becomes much more achievable.

Foolish Takeaway

Going from $100,000 to $1 million might sound daunting, but it’s often more straightforward than people think.

With time, regular investing, and a focus on quality, that next milestone is well within reach.

For me, the key is simple. Stay invested, keep adding, and let compounding do its job.

The post 3 ways to get from $100,000 to $1 million in retirement savings appeared first on The Motley Fool Australia.

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• Are these the smartest ASX tech stocks to buy now with $2,000?
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• Where to invest $20,000 for dividend income on the ASX
• Portfolio strategies for 2 potential Middle East scenarios – Expert

Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group, ResMed, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Macquarie Group and ResMed. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It hasn’t been a great year for many ASX tech stocks.

Some of the market’s highest-quality names have been sold off heavily, with investors worried about valuations, interest rates, and the impact of artificial intelligence (AI) disruption.

But when I see great businesses down 40% to 60%, I start paying attention.

Three that stand out to me as smart buys for investors with $2,000 are below.

Pro Medicus Ltd (ASX: PME)

Pro Medicus has fallen roughly 60% from its highs, which is a big move for a company that’s rarely looked cheap.

What I find interesting is that the core story hasn’t really changed.

This is still a global leader in medical imaging software, with long-term contracts, high margins, and a growing presence in the US healthcare system. 

Furthermore, management has spoken at length about why it believes AI will benefit its business, not disrupt it.

In my view, businesses like this don’t often go on sale. And when they do, it’s usually because of broader market sentiment rather than something fundamentally broken.

It still won’t be the cheapest stock on traditional metrics. But I think quality rarely is.

Xero Ltd (ASX: XRO)

Xero is also down around 60% from its peak, which feels significant for a business of its scale.

What I like here is the combination of growth and stickiness. Once small businesses adopt accounting software, they tend to stay. That creates recurring revenue and strong customer retention.

On top of that, Xero still has a long runway for growth globally. Management estimates that its total addressable market is $100 billion globally across accounting, payments, and payroll.

To me, the key question isn’t whether Xero can grow. It’s how fast, and at what margins.

If management continues to improve profitability while expanding internationally, I think the current share price weakness could look like an incredible opportunity in hindsight.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne hasn’t fallen as much as the others, down around 40%, but it’s still a meaningful pullback.

This is probably the most predictable of the three ASX tech stocks. It provides enterprise software to government and education sectors, with long-term contracts and high recurring revenue.

What stands out to me is its consistency. Revenue growth, margins, and returns have been steadily improving over time.

It’s not trying to dominate the world like some tech companies. It’s executing well in its niche.

And sometimes, that’s exactly what you want.

Foolish takeaway

Pro Medicus, Xero, and TechnologyOne aren’t risk-free investments.

But after significant share price declines, I think the risk-reward profile has improved significantly.

For me, this is the kind of setup I like. Strong businesses, long-term growth potential, and a market that’s giving you a second chance to buy them at a lower price.

They may not be the only ASX tech stocks to consider, but right now, they could be some of the smartest.

The post Are these the smartest ASX tech stocks to buy now with $2,000? appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Pro Medicus and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investors with a high tolerance for risk might want to check out the exciting small-cap ASX stock in this article.

That’s because the team at Bell Potter has just initiated coverage on it with a bullish view.

Which small-cap ASX stock?

The stock that Bell Potter has been looking at is Orthocell Ltd (ASX: OCC).

It is a commercial-stage regenerative medicine company focused on developing and commercialising collagen-based medical devices and autologous cell therapies. These are for the repair and regeneration of bone and soft tissue.

Bell Potter believes the company’s Remplir product has a significant opportunity and could be a key commercial driver. It explains:

Orthocell’s investment case is anchored by Remplir, a collagen nerve wrap used in peripheral nerve repair that is differentiated by both design and commercial positioning. The product targets an underpenetrated market where clinical need persists and adjunct device usage remains low, creating room for a next-generation solution to gain traction as surgeon familiarity, evidence and commercial access continue to build.

In this context, Remplir has the potential to become the key commercial driver of the OCC story, with adoption supported by a large procedural opportunity rather than requiring aggressive incumbent displacement.

Commercial inflection underway

The broker also highlights that the small-cap ASX stock’s commercial inflection is underway at a time that its balance sheet is very strong. It adds:

OCC has moved beyond regulatory promise and into early US commercial rollout, opening access to a US$1.6bn peripheral nerve repair market. The company enters this phase well-funded, with A$49.4m of cash following its 1H FY26 capital raise, and is pursuing a more hands-on go-to-market model that combines specialist distributors with internal oversight of medical education, KOL engagement and hospital access.

This approach should enable OCC to drive early adoption in a capital-efficient manner while retaining control over the key levers of VAC conversion and surgeon uptake. Although near-term cash burn is likely to remain elevated, we expect Remplir-led revenue growth and margin expansion to progressively improve operating leverage as rollout matures.

Big potential returns

According to the note, Bell Potter has initiated coverage on the small-cap ASX stock with a speculative buy rating and $1.15 price target.

Based on its current share price of 78 cents, this implies potential upside of almost 50% for investors over the next 12 months.

Commenting on its buy recommendation, the broker said:

We initiate coverage with a BUY (spec.) recommendation and A$1.15 valuation based on a risk-adjusted DCF, which we see as more appropriate than relative multiples given OCC’s early-stage commercial profile and FY29 EBITDA break-even horizon.

Our valuation is driven primarily by Remplir’s US rollout, leaving the key near-term proof points centred on distributor execution, VAC conversion, surgeon uptake and repeat procedure volumes. Beyond our base case, we see additional upside from broader geographic rollout and further indication expansion, including EU/UK approval and prostate nerve repair.

The post Bell Potter just put a buy rating on this exciting small-cap ASX stock appeared first on The Motley Fool Australia.

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Despite the S&P/ASX 200 Index (ASX: XJO) being Australia’s benchmark index, it is highly concentrated towards a few blue-chip stocks. 

In fact, the ASX 200 is one of the most concentrated developed-market indices on the planet.

After initially starting off 2026 strongly, Australia’s benchmark index has cooled off this month amidst geopolitical conflict. 

Across January and February, the ASX 200 rose more than 5%. 

Since then, it has dipped just over 4%. 

Let’s see how some of Australia’s blue-chip stocks have performed. 

Commonwealth Bank of Australia (ASX: CBA)

CBA remains Australia’s largest company by market cap. 

The big bank experienced a huge boost during February as earnings season brought some strong results, surprising many brokers who had tipped a decline in 2026. 

The bank reported a 6% increase in cash profit to $5.45 billion for 1H FY26.

It also declared a fully-franked interim dividend of $2.35 per share, up 4% from 1H FY25.

At the time of writing, it is up 9.9% for the year to date. 

It has also remained steady amidst broader market volatility in March. 

BHP Group Ltd (ASX: BHP)

BHP is Australia’s second largest company by market cap and its largest mining/materials stock. 

The global mining giant also was a winner during earnings season, hitting all-time highs in February. 

It has cooled down significantly in the last few weeks, as many materials stocks have dropped amidst the conflict in the Middle East. 

All in all, the stock price is up a healthy 9.46% in 2026. 

It will be important to monitor how markets react in the coming days/weeks to yesterday’s announcement of a change in leadership.

Yesterday, the company reported that Brandon Craig will become its new CEO and director on 1 July.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is Australia’s largest consumer discretionary/consumer staples stock. 

Its subsidiaries include household names such as Bunnings Warehouse, Kmart Australia, Officeworks, Priceline, and more.

Despite its dominant market position, it has fallen recently after a solid start to the year. 

At the time of writing, it is down 15% over the last month. 

Year to date, it is down roughly 8%. 

There is growing sentiment that the current share price could be a strong entry point after the drop. 

CSL Ltd (ASX: CSL)

CSL also sits inside the top 10 largest blue-chip stocks in Australia. 

It is also the largest healthcare company on the ASX. 

While banks and miners have broadly increased year to date, it’s been more pain for healthcare shares like CSL. 

It currently sits close to 52-week lows, at $138.00. 

CSL shares are down 44% over the last 12 months, which includes almost 20% year to date. 

This has come from poor investor sentiment on the back of poor growth expectations,  declining US vaccination rates and international demand. 

With that being said, it has consistently been rated as oversold by brokers, who largely have positive outlooks on the company.

The post How are Australia’s biggest blue-chip stocks performing in 2026? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Wesfarmers. The Motley Fool Australia has recommended BHP Group, CSL, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are looking to put $20,000 to work, ASX dividend stocks can be a great place to start.

They offer the potential for regular income while also providing exposure to businesses that can grow over time. The key is to focus on companies with reliable earnings, sustainable payouts, and supportive industry conditions.

With that in mind, here are three ASX dividend stocks that could be worth considering.

Charter Hall Retail REIT (ASX: CQR)

The first dividend stock to consider is Charter Hall Retail REIT.

This property trust owns a portfolio of convenience-based retail centres, typically anchored by supermarkets and essential service providers. These locations tend to attract consistent foot traffic, which supports stable rental income.

Rather than relying on discretionary spending, the trust benefits from everyday consumer activity. This makes its income stream more resilient compared to traditional retail landlords.

Macquarie is positive on the company and recently put an outperform rating and $4.15 price target on its shares.

As for income, the broker expects dividends per share of 25.5 cents in FY 2026 and then 25.4 cents in FY 2027. Based on its current share price of $3.96, this would mean dividend yields of approximately 6.4% for both years.

Harvey Norman Holdings Ltd (ASX: HVN)

Another ASX dividend stock that could be worth a look is Harvey Norman.

Unlike many retailers, Harvey Norman operates a unique franchise model that generates income through both retail sales and property ownership. This dual structure gives it multiple earnings streams and can help support its dividend payments.

While retail conditions can fluctuate, Harvey Norman has shown an ability to remain profitable across cycles, supported by its brand recognition and broad product offering.

Macquarie is also positive on this one and earlier this month put an outperform rating and $6.60 price target on its shares.

With respect to dividends, Macquarie expects Harvey Norman to reward shareholders with fully franked payouts of 27.8 cents per share in FY 2026 and 31.2 cents per share in FY 2027. Based on its current share price of $5.23, this would mean dividend yields of 5.3% and 6%, respectively.

Premier Investments Ltd (ASX: PMV)

A third ASX dividend stock to consider is Premier Investments.

This company owns the Smiggle and Peter Alexander brands, which have built strong customer followings both in Australia and internationally.

It also holds a significant investment in Breville Group Ltd (ASX: BRG), which adds another layer of value and income potential to the group.

UBS is bullish on the company. Last week, it put a buy rating and $18.00 price target on its shares.

As for income, the broker is forecasting fully franked dividends of 58 cents per share in FY 2026 and then 64 cents per share in FY 2027. Based on its current share price of $12.79, this equates to dividend yields of 4.5% and 5%, respectively.

The post Where to invest $20,000 for dividend income on the ASX appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Charter Hall Retail REIT and Harvey Norman. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A Senior Investment Strategist has provided a timely roadmap for two possible outcomes for the current Middle East conflict. 

Cameron Gleeson, Betashares, said geopolitical events like this can create sudden swings in markets. 

This has certainly been felt throughout March.

In a report released yesterday, he outlined two potential paths for markets: a prolonged conflict and disruption to global oil supply, or a de-escalation within a matter of weeks. 

He also highlighted several ASX ETFs that may help investors position their portfolios accordingly.

How does the current conflict impact ASX portfolios?

There are several reasons the current conflict in the Middle East is influencing markets.

The most immediate influence to markets is typically energy prices, which have had significant movement this past week on mixed messages from the Trump administration and Tehran’s defiance. 

According to the report from Betashares, impact to global oil supply can quickly influence other areas of the economy like inflation expectations, central bank policy and the global growth outlook.

Here are two possible outcomes and how investors could adjust their portfolios.

Its important investors understand these scenarios are illustrative only and not predictions.

Potential path one: Prolonged conflict

Mr Gleeson said if tensions escalate and oil shipments through the Strait of Hormuz face sustained disruption, energy prices may remain elevated for some time. 

According to the report, even if Trump succeeds in dismantling Iran’s nuclear program and triggering regime change, the outcome could still create a power vacuum in which factions within Iran continue to threaten energy shipments.

If you are looking for the single most important indicator of risk in this crisis, it’s the price of oil. Oil’s reaction has been volatile, but some investors have tried to use it as a “geopolitical hedge” for when other asset valuations come under pressure.

The ASX ETF that offers the most direct exposure to changes in the price of oil is the BetaShares Crude Oil Index ETF – Currency Hedged (Synthetic) (ASX: OOO). 

The Motley Fool’s Sebastian Bowen provided a thorough breakdown of the fund and its positioning relative to the current conflict earlier this month. 

Other ASX ETFs that may be worthy of consideration if you expect a prolonged conflict and ongoing oil crisis include: 

• BetaShares Global Energy Companies ETF – Currency Hedged (ASX: FUEL) – Provides exposure to some of the world’s largest oil and gas producers, with significant production outside the Gulf region.
• BetaShares Global Agriculture Companies ETF – Currency Hedged (ASX: FOOD)
• BetaShares Gold Bullion ETF – Currency Hedged (ASX: QAU)

Potential path two: De-escalation

Mr Gleeson said alternatively, if tensions ease quickly and shipping through the Strait of Hormuz resumes uninterrupted, oil prices could retrace and the geopolitical risk premium embedded in markets may fade. 

In that environment, global equities and cyclical sectors could benefit from improving sentiment and a renewed focus on economic growth.

A rising tide lifts all boats and one might expect all equity markets to rally, but below we identify some of the higher beta opportunities for such a recovery.

Some ASX ETFs mentioned include: 

• Betashares Msci Emerging Markets Complex Etf (ASX: BEMG)
• Betashares Global Shares Ex Us Etf (ASX: EXUS)
• BetaShares Geared Australian Equity Fund (Hedge Fund) (ASX: GEAR)

He highlighted that historically, emerging markets have performed strongly when global risk appetite improves and trade flows normalise.

Additionally, Ex-US equities provide greater exposure to cyclical sectors like financials and industrials than the US equity market and, as such, greater exposure to a strong global growth environment.

The post Portfolio strategies for 2 potential Middle East scenarios – Expert appeared first on The Motley Fool Australia.

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• These 3 ASX ETFs can protect your portfolio against inflation
• Up 30% in a month: Is it too late to buy the BetaShares Crude Oil ETF (OOO)?
• Oil slumps to US$83 per barrel. Here’s what is driving the sharp pullback
• If you think global instability will persist, these ASX ETFs might be for you

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian central bank decided to increase the cash rate again in March, marking the second RBA interest rate increase in the last two meetings. Aussies may be wondering if there’s any more pain to come following the 25 basis point (0.25%) rise to 4.1%.

The pace of inflation was already looking a bit hot before the Iran war, and now the outlook seems even more difficult following the Middle East conflict.

After two rate increases this year already, borrowers may be wondering and worrying about what could happen over the rest of the year. Economists at UBS have shared their views on what the financial institution expects.

Elevated inflation

UBS noted that the RBA seems like a “hawkish outlier” compared to most global central banks, with the current cash rate now only 25 basis points (0.25%) below the prior cycle’s peak of 4.35%.

The RBA vote was five votes for a hike and four for a hold, so UBS called it a ‘dovish hike’. UBS thinks that the RBA governor and deputy governor voted to hike, along with three external members. The February 2026 vote was unanimous, 9 to 0.

The central bank noted in its statement that “inflation is likely to remain above target for some time” and “risks have tilted further to the upside, including to inflation expectations.”

UBS explained:

Our interpretation of this comment remains on the hawkish side. We see this comment as a signal that as long as inflation remains too high, then each RBA meeting is ‘live’ to another potential rate hike.

How high could the RBA interest rate go?

At the subsequent press conference, the RBA governor didn’t want to answer whether this week’s rate rise was ‘front-loading’ or not.

UBS expects the RBA interest rate to increase by another 25 basis points (0.25%) in May 2026, bringing the rate to 4.35%. However, the board’s split decision suggests it’s possible the RBA’s next meeting in May 2026 could be a pause.

The broker also suggested that the RBA’s commentary was hawkish enough that the RBA staff’s recommendation will be a hike at the next meeting in May 2026. It’s possible the next meeting could also be a 5-to-4 rate-hike vote again. Additionally, there’s a risk the RBA will have to hike to 3.60%, though that’s not UBS’s central case.

UBS said:

Further ahead, we see a prolonged period of a peak in interest rates at 4.35%; unless there is a material change in the negative direction of: 1) the debt and household wealth cycle, which is booming ~8% y/y to 10% y/y; 2) nominal Government spending, which is still booming ~8% y/y; and/or 3) the global outlook deteriorating amid higher energy prices.

More broadly, for the RBA to achieve its mandated inflation goal of 2½% y/y (after inflation has already been above the RBA’s target for most of the last ~4 years), it seems increasingly likely that interest rates will need to remain ‘higher-for-longer’, in order to slow GDP growth for long enough, to get the unemployment rate significantly higher than now.

With higher rates, that’s likely a tailwind for the net interest margin (NIM) of Commonwealth Bank of Australia (ASX: CBA), National Bank of Australia Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC), but a headwind for borrowers going into arrears.

The post Here’s what experts think will happen with the RBA interest rate this year appeared first on The Motley Fool Australia.

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• CBA shares: 3 reasons to buy and 3 reasons to sell
• Forget CBA shares! Buy these ASX dividend shares instead for passive income
• Forget CBA shares, this ASX bank stock is tipped to soar another 70%
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are building a growth-focused portfolio, adding exposure to high-potential sectors can make a big difference over time.

An easy way to do this is with exchange traded funds (ETFs), which allow you to buy large groups of shares with a single investment.

With that in mind, here are three exciting ASX ETFs that could appeal to Aussie growth investors.

BetaShares Crypto Innovators ETF (ASX: CRYP)

The first ASX ETF that offers exposure to a high-growth and emerging sector is the BetaShares Crypto Innovators ETF.

This fund doesn’t invest directly in cryptocurrencies. Instead, it provides exposure to companies operating in the digital asset ecosystem. This includes crypto exchanges, mining firms, and businesses building blockchain infrastructure.

The appeal here is the potential for significant long-term growth as digital assets continue to evolve and gain broader acceptance. While the sector can be very volatile, it also represents one of the most disruptive areas of finance and technology.

For investors with a higher risk tolerance, this ETF offers a way to participate in the growth of the crypto economy without needing to buy and store digital currencies directly.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

Another ASX ETF tapping into a global growth trend is the VanEck Video Gaming and Esports ETF.

Gaming is no longer a niche hobby. It is a massive global industry with billions of players and rapidly growing revenues across mobile, console, and online platforms.

This ETF provides exposure to companies involved in game development, hardware, and esports. These businesses benefit from increasing digital consumption, the rise of online communities, and ongoing technological advancements.

What makes this theme compelling is its longevity. Gaming continues to expand across demographics and regions, making it a structural growth story rather than a short-term trend.

This fund was recently recommended by analysts at VanEck.

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

For growth investors wanting exposure closer to home, the BetaShares S&P/ASX Australian Technology ETF could be worth considering.

This ASX ETF includes Australian shares involved in areas such as software, payments, and digital platforms. These businesses are often earlier in their growth journey compared to global tech giants, which can create opportunities for higher growth.

While the sector can experience volatility, particularly during interest rate changes or shifts in sentiment, it also has the potential to deliver strong returns over time as these companies scale their operations.

And with Aussie tech shares down materially over the past 12 months, now could be an opportune time to add exposure to this side of the market.

This fund was recently recommended by analysts at Betashares.

The post 3 exciting ASX ETFs for Aussie growth investors to buy and hold appeared first on The Motley Fool Australia.

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