Are we heading for a recession? Where will interests rates go now? Our friends at Financy go to a number of leading women in finance to hear their 2017 predictions.
2017 is crawling towards us, so where is the best place for your money in the year ahead and what’s the economic outlook for assets?
We ask some of the top women in finance for their views. But first, here’s a recap of some of the things that affected your money in 2016.
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The Reserve Bank of Australia (RBA) cut rates twice in 2016. We started the year at 2 per cent, but persistent weakness in economic growth was the main trigger for cutting rates in April and then again in August to a current setting of 1.5 per cent.
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Lower rates fuelled strong housing construction activity and property price growth in Spring, particularly in Sydney and Melbourne. But on the flip side it also reduced the value of your money sitting in cash accounts.
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The major banks also acted out of sync with the RBA and raised interest rates on fixed and variable rate mortgages for investors. They cited the need to protect their profit margins but it’s also likely they see the need for higher rates in the future.
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Household consumption has been mixed in 2016 as many people have benefited from higher house prices, yet wages growth hasn’t really moved and nor have bank savings rates improved. Retail sales were weak in the first half but improved more recently. Indeed the major retail stores have been anticipating a strong Christmas spending period.