Bad Medicine
Bad medicine: Why the RBA is right to increase rates
In February the Reserve Bank of Australia (RBA) increased official interest rates again, this time another 25 basis points. The official interest rates are now 3.35% pa, up from 0.1% pa in May last year, an increase that is sure to be causing mortgage stress and rental increases amongst the most vulnerable.
But, as bad as high interest rates are, they are better than the alternative; high long-term inflation. That’s why the RBA is right to keep increasing interest rates.
Inflation and your retirement
Inflation and your retirement
With the property market cooling, Australians have finally stopped talking about real estate prices. At dinner parties everywhere, there’s a new conversation.
The bad news? The new conversation is about the rising costs of living. It’s understandable. In the year to July 2022, the costs of consumer goods and services rose 7 per cent.
While the media focus has been on the plight of young families with mortgages, rising inflation presents unique challenges and risks to retirees as well. Especially in low growth economic conditions.
But there are things retirees can do to manage inflation risk and make sure their money lasts.