Australian businesses, investors and homeowners waited eagerly for RBA Governor Philip Lowe’s announcement last week.
As we know, the RBA decided interest rates would remain the same, maintaining the record low of 0.10 per cent despite rising inflation and costs of living, plus the first signs of a wage rise in years.
We’re sure many took a sigh of relief, but economists are predicting the inevitable increase could occur as early as June.
Australia, and Western Australia in particular, has fared exceptionally well economy-wise through the global pandemic.
We avoided being brought to our knees and for our good behaviour, we’ve been rewarded with a 50-year low unemployment rate of 3.75 per cent and better-than-expected financial positions.
However, with all good things come concerns.
General consensus is that once unemployment sits at 4 per cent, wages rise by 3 per cent and inflation sits at around 2 to 3 per cent, rates are likely to start climbing. And the economic planets seem to be aligning.
See what economists at two of Australia’s major lenders have to say about the potential timing of those inevitable rate rises in THIS BLOOMBERG ARTICLE.