There has been quite a lot of noise about (rising) inflation since roughly the end of March. It’s the kind of noise that borrowers and wannabe borrowers should keep an eye on. Why’s that you ask? Because there’s a clear relationship between inflation and interest rates – when inflation changes, interest rates generally go the [...]
Next Thursday the Reserve Bank decides on what to do with the Official Cash Rate which will in turn influence what the banks charge you and I. My pick is that the OCR won’t change right now because the economy still has quite a hangover. So don’t expect the banks to do much either. But [...]