As predicted, the Reserve Bank of Australia raised the cash rate from 4.1% to 4.35% in November, marking the thirteenth hike in this cycle. In this video, MA Financial's Head of Credit and Lending, Frank Danieli, outlines the global and investor implications.
Despite a 6% drop in core inflation to 5.4% in the September quarter, the recent rise hints at a possible trend of higher interest rates ahead due to stubborn inflation. As we transition from a long-standing period of structurally declining interest rates into an era of potentially sustained higher rates, the investment landscape is poised for change. Investors need to think differently and find ways to position their portfolios to perform and deliver returns, yield, and income during a period when interest rates could remain higher for longer.