With January almost behind us, I thought I’d update you on some interesting news from the past week.
The topic everyone is thinking about right now is interest rates.
Every major bank’s economist is predicting no rate rises in February when the RBA meets again, and given that we lost 100,000 full time jobs in December – and that we are also at our highest unemployment rate in 3 years, I’m sure that won’t change their mind.
You might remember me talking about this a few weeks ago. My view is still that the economy has slowed more than enough to warrant no more rate rises. But who knows what the future holds?
My personal thoughts aside, Macquarie Bank today announced a cut to their 3,4 and 5 year fixed rates. As low as 5.99%.
I am sure this is a sign of things to come from other lenders and points to a softening interest rate market.
My go to on finance news is the wonderful Pete Wargent (check out his blog here). He is quoted as saying:
“For Australia, there’ll be little of chance of any easing until the middle of the year, unless geopolitical issues flare up dramatically. And even when a move does come, expect only a couple of cuts in 2024, with a bit more easing to come in 2025.”
I tend to agree. Lastly (and anecdotally) I’ve noticed an uplift in enquiry for people thinking about their next purchase in the next few months. Seems that while the interest rate pain is hurting our cashflow, it hasn’t done much to my clients’ appetite for wanting to make moves towards a better financial future.
Some would say they are still fidgety. I can relate and just want to remind you all that this is where we excel. Helping people realise their ability to make that move, no matter what it is.
Get in touch with us if you want to discuss your next move!