Australian businesses are pumping the brakes on major investment plans as economic uncertainty continues to weigh on decision-making. The latest data paints a picture of caution across the corporate sector, with renewed inflationary pressures putting the spotlight back on central bank policy. Here's the kicker—if inflation stays sticky, the Reserve Bank may have no choice but to shift gears and resume rate hikes. For those tracking capital markets and asset allocation, this matters. When traditional monetary policy tightens, investors typically reassess their risk exposure across all asset classes. Economic cycles shaped by central bank actions have always driven significant shifts in how capital flows through markets, and this situation is no exception. Keep an eye on upcoming RBA communications—they'll likely signal whether we're heading into a new policy regime.