Rate hike surprise (not)

It should come as no surprise that, at its meeting today, the Board of the Reserve Bank of Australia (RBA) increased the cash rate target by 50 basis points to 2.35 per cent. That’s a double hit. Why? Because inflation in Australia is the highest it’s been since the 1990s, and is expected to increase further in the coming months. The RBA anticipates it will peak at just over seven per cent later in the year, before declining back to the target range between two and three per cent. And it's this range the Board seeks to achieve…while keeping the Australian economy on an even keel. In more positive news, the Australian economy is growing solidly, wages growth is picking up, and in July the unemployment rate declined even further to 3.4 per cent, the lowest rate in almost 50 years. In addition, many households have built up large financial buffers and the savings rate remains higher than it was pre-pandemic. And all this is about to hit the headlines So brace yourself for the news tonight. And while you’re watching, listening and reading, to help you navigate your way through the click bait and the sensationalism, remember this good advice from Dr Josie Vine, Senior Journalism Scholar with RMIT, “…journalists have to report change. They have to report what is new. And, at the moment, rates going up, it's new. And when rates start going down, that will be new, too.” In the meantime:It’s times like these we refer back to the reason The Property Mentors was established. To help all investors – whether they’re experienced masters of the property market or first time investors – to: Define their futureCreate a plan that will get them thereProvide objective advice to keep them on the path to realising their dreams Especially in troubling times. Because while we can’t do a great deal about the wider economy, we can help all investors to keep calm when things get tough, and navigate the hurdles that get in the way of their end goals. After all:So, if you’re interested in learning how to build long term wealth through Australian property – despite the noise and confusion in the marketplace – book in a call with one of our mentors today. LIKE TO LEARN MORE? Check out our podcast with Dr Josie Vine on how the news cycle and the media industry works here.