Congratulations on getting past hump month!
As the dust settles on the EOFY, finance news has been shifting its focus on whether interest rates will continue to rise.
The Reserve Bank met in the first week of the month and official rates are unchanged at 1.50 per cent.
To that end, this month I take a look at what one former RBA board member had to say about rate rises.
On a lighter note, I also investigate the top 4 interior trends for your home this winter. Enjoy!
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Will interest rates rise further? Experts are still undecided.
A former board member of the Reserve Bank has claimed interest rates could increase 8 times in the next two years.
John Edwards suggests forecasts for inflation will force the RBA to consider a program of steady rate increases as economic growth accelerates to 3 per cent against a stronger global backdrop.
To do so, the RBA would need to instigate 4 quarter-point increases over two years starting in 2018. Rates have been on hold at 1.5 per cent since last August.
“It seems to me that something like eight quarter percentage point tightenings over 2018 and 2019 are distinctly possible, if the RBA’s economic forecasts prove correct,” said Edwards, who was on the bank’s board until July last year.
“It’s possible the tightening could start earlier, or if not the tightening itself, at least the signalling which should precede it. We may be seeing a little of that now.” There is, however, a risk in rate increases alongside high household debt. “The bigger the household debt, the more impact a quarter percentage point increase in the policy rate has on household spending,” he said.
“The pace of tightening will anyway be governed by the strength of the economy,” Edwards said.
“If household spending weakness, if the long expected firming of non-mining business investment is further delayed, if the Australian dollar strengthens, if employment growth is persistently weak, then the trajectory of rate rises will be less steep and the pace less rapid.”
If you haven’t checked if your current mortgage deal gives you the greatest savings possible, it’s time. Let me talk you through all your options so you can make the right decision for your hip pocket and the future.
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The winter warmers that are right on trend.
As the mercury plummets and we turn our attention indoors, it makes perfect sense to start thinking about revamping our indoor spaces. But how do you do that without breaking the bank?
Updating your homewares is a great way to redecorate on a budget. So I thought I’d take a look at the winter homeware trends that are making a splash right now. Think olive greens and burnt oranges, mustards and sandy tones.
1. Going native – being on trend right now is all about those warm, earthy colours that perfectly evoke our native landscapes. Think olive, burnt orange, turmeric or sandy hues and mix them up for a complete look.
2. Handmade – Look for artisan made details from countries like Morocco or India. Tassels, embroidery, beading and fine details are great to add texture on cushions and throws for an individualised look.
3. Faux fur – Snuggle up to some cosy faux fur throws for instant winter style. Coordinate with velvet cushions and layer with a shaggy rug for a super-luxe look that will warm your heart.
4. Big photos – one interior trend that’s huge this winter is putting an oversized photographic print on your wall. Bring beauty and wonder into your home with natural landscapes or landmarks that will let you dream of warmer climes.
If there’s one thing you should be organised about, it’s your mortgage. Getting a regular mortgage health check can save you thousands and it’s simple to do – just ask me to crunch the numbers for you!
