Amidst all the bad news of 2022 comes some good news at last.
It is just possible that the rate of inflation in Australia has peaked (in October) earlier than predicted by economists (The Australian 1 Dec 2022: Robert Gottliebsen).
(By the way – what do you call 100 economists in a room?… a vacuum!)
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I am writing again – to let you know how I think the interest rate scenario will unfold in 2022 and how to prepare together. We each have roles.
The pieces are falling into place for the Reserve Bank to start to lift the cash rate.
To repeat from an earlier email, this is how I see the rate scenario playing out this year…
Read moreThe Reserve Bank has cut rates to low levels to encourage borrowing.
This is a good thing.
The strategy has worked.
Housing and construction are the backbone of our economy – because they generate so much employment and activity.
House price has increased – and that in itself is not a bad thing.
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