It’s All About Interest Rates


From an economic standpoint, it certainly seems we are headed in the right direction. We are getting the upper hand in living with the virus, international borders are reopening, and Australia is once again welcoming tourists, students, and migrants. The RBA has modelled that unemployment is at 4.25% and heading to sub-4%, the lowest we have experienced for decades – with GDP growth forecasts recently revised upwards to 4.25%.

Despite the economy recovering strongly enough to support the tapering of fiscal and monetary policies, the prospect of this happening has sent the market into a tailspin due to fears of immediate interest rate increases and inflation getting out of control.

MSquared Capital

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