Outlook for Australia's property investment market
Outlook for Australia's property investment market
I spent a bit of time this week to deliver further into the Reserve Bank of Australia's (RBA) decision to hold rates in September. Particularly the statement itself. This move was anticipated by many who have been closely monitoring the economic indicators. But there is a change in the air.
Post-pandemic, central banks worldwide grappled with the question of inflation's nature. Was it transitory or a more enduring concern? By the end of 2021, data indicated that inflation was not just a temporary phenomenon but a persistent issue that warranted intervention.
In response, the RBA, along with other central banks, initiated a series of rate hikes. Their objective was clear: to manage and mitigate the rising inflationary pressures.
Now, as we approach the end of 2023, the RBA's recent decision signals a shift from an aggressive stance to a more cautious one. The bank seems to be moving into a holding pattern, carefully weighing the economic data and potential risks before determining their next move.
There's a growing concern that aggressive rate hikes could lead to unforeseen economic repercussions. Central banks, including the RBA, are now in a challenging position, trying to strike a balance between controlling inflation and ensuring economic stability.
Bonus Podcast: Away from markets, I had a great video chat this week with my friend and executive coach Snezana Djuric on stress management and effective delegation for leaders.
As I’ve written earlier this year, I’m starting to do more of these podcasts based on feedback from readers and business contacts I regularly meet with. You can watch the interview by clicking the link above to the Liv Insights publication.
Peter Esho is an economist and Founder of Esho Group. He has 20 years of experience in investments and markets.