Economic Update - February 2023

Looking ahead for the 2023 year, whilst growth could be slower than the fast pace we witnessed during 2022, it is shaping up to be a year of solidification for many. Economists are currently predicting one more rate rise for 2023 (when the RBA meets next Tuesday, 7th of February) of between 25 and 40 basis points. This will bring the interest rate to between 3.1% where it currently sits to 3.35% - 3.5%. From there it has been suggested that as we have hopefully seen the peak in inflation, there will be a pause on further interest rate movements whilst the effects trickly through the economy with talk of possible cuts towards the end of the 2023 calendar year.

If you are coming of a low fixed rate on your mortgage this year and want to see what your new repayments will be and devise a strategy going forward, please reach out for an obligation free review of your situation.