The hot topic that continues to be at the forefront of most people’s mind is the Interest Rate. At the time of writing this, the current cash rate is 1.35%.
What’s important to remember about the Cash Rate is that it is the key tool used for Monetary Policy – Monetary Policy involves influencing interest rates to affect aggregate demand, employment & inflation in the economy. Monetary Policy has 3 key objectives;
What does this all mean? As long as there is Inflation outside of the 2%-3% band & low unemployment numbers, the Cash Rate is predicted to continue to rise. Most are predicting the Cash Rate to peak in mid/late 2023 between 2.20% – 2.50%. These predictions are changing almost on a weekly basis!
What can you do? MAKE YOUR PLANS NOW. Engage with the Gild Finance team to ensure you have the right structures & buffers in place to cope with these rate rises. It will only get more difficult as the year goes on to acquire finance (especially working capital solutions).