How high will Australian interest rates rise?
There's a reason why interest rates go up and there's a reason why interest rates go down.
In last Friday’s live session on Tiktok, Domenic spoke to Wealthi Co-Founder Peter Esho about the outlook for interest rates. They discussed inflation and how to use slowdowns as an opportunity to make long term investments.
Interest rates are going up for two reasons. One we're coming up from zero. So we're coming off an artificial level where interest rates were reduced to zero because we went through the lockdowns and everything shut down.
Point number two is interest rates are rising because the economy is really hot. The jobs market's really hot. It's never been easier to get a job.
Jobs and salaries are going up and the price of everything's going up. So when the price of everything goes up, that means the overall economic activity is quite good.
And when things are quite good, rates go up to try to moderate that so that you don't get in a situation where the things blow out of proportion and it's uncontrolled and it wakes people in behind.
It's a really interesting time in the property investment market. The market is slowing, but this means we're able to find some great buying opportunities. If you have been thinking about property investing and waiting for the market to come back a little, now is the time to make use of these opportunities.