The scoop on interest rates: What's Changing and What to Expect in 2024

Forget the old routine of interest rate announcements happening like clockwork on the first Tuesday of every month. The Reserve Bank of Australia (RBA) has thrown us a curveball by shaking up its schedule. Now, instead of monthly updates, we’re looking at just eight rate calls for the whole year. It’s a departure from tradition, but hopefully, this change could be a good thing.

The RBA has explained that the investigation into its rate-setting process aims to enhance transparency and efficiency. Sounds great, but we’re not convinced more transparency is going to make their decisions more relevant. We’ll wait and see. The first set of changes is already in motion and the second tranche, scheduled for March 19th, is eagerly anticipated by economists and market observers, and we’ll give you our take on it next week.

Jumping abroad, we consider current global economic dynamics, particularly in the United States, as they have implications for Australia’s interest rate trajectory. Over in the US, inflation is on the rise, while here in Australia, it’s heading in the opposite direction, so the likelihood of an immediate rate change seems remote. But we’ll be keeping an eye on it all because the RBA can do some surprising things that seem to go against prevailing logic.

Looking ahead, our predictions from late 2022 suggesting that the property market would start climbing again later this year are still ringing true. That’s especially likely as we head into the latter half of the year when rates are expected to take a dip and demand continues to outweigh property supply as we outlined over the last couple of weeks.

Stay informed, stay agile, and remember to speak with your property coach about how you can leverage the circumstances and opportunities to build wealth through property and secure your financial future. If you haven’t got your strategy mapped out and in play, contact us today. Our advice won’t cost you a cent but it could change your life forever.

As an aside, if you have considered investing in property through a Self Managed Super Fund, watch this space for some very exciting announcements. The Sunshine Coast Property Market Update isn’t the only thing brewing here at the moment … In the interim, that too is a good strategy conversation with your Property Coach in preparation.