Podbean logo
  • Discover
  • Podcast Features
    • Podcast Hosting

      Start your podcast with all the features you need.

    • Podbean AI Podbean AI

      AI-Enhanced Audio Quality and Content Generation.

    • Blog to Podcast

      Repurpose your blog into an engaging podcast.

    • Video to Podcast

      Convert YouTube playlists to podcasts, videos to audios.

  • Monetization
    • Ads Marketplace

      Join Ads Marketplace to earn through podcast sponsorships.

    • PodAds

      Manage your ads with dynamic ad insertion capability.

    • Apple Podcasts Subscriptions Integration

      Monetize with Apple Podcasts Subscriptions via Podbean.

    • Live Streaming

      Earn rewards and recurring income from Fan Club membership.

  • Podbean App
    • Podcast Studio

      Easy-to-use audio recorder app.

    • Podcast App

      The best podcast player & podcast app.

  • Help and Support
    • Help Center

      Get the answers and support you need.

    • Podbean Academy

      Resources and guides to launch, grow, and monetize podcast.

    • Podbean Blog

      Stay updated with the latest podcasting tips and trends.

    • What’s New

      Check out our newest and recently released features!

    • Podcasting Smarter

      Podcast interviews, best practices, and helpful tips.

  • Popular Topics
    • How to Start a Podcast

      The step-by-step guide to start your own podcast.

    • How to Start a Live Podcast

      Create the best live podcast and engage your audience.

    • How to Monetize a Podcast

      Tips on making the decision to monetize your podcast.

    • How to Promote Your Podcast

      The best ways to get more eyes and ears on your podcast.

    • Podcast Advertising 101

      Everything you need to know about podcast advertising.

    • Mobile Podcast Recording Guide

      The ultimate guide to recording a podcast on your phone.

    • How to Use Group Recording

      Steps to set up and use group recording in the Podbean app.

  • All Arts Business Comedy Education
  • Fiction Government Health & Fitness History Kids & Family
  • Leisure Music News Religion & Spirituality Science
  • Society & Culture Sports Technology True Crime TV & Film
  • Live
  • How to Start a Podcast
  • How to Start a Live Podcast
  • How to Monetize a podcast
  • How to Promote Your Podcast
  • How to Use Group Recording
  • Log in
  • Start your podcast for free
  • Podcasting
    • Podcast Features
      • Podcast Hosting

        Start your podcast with all the features you need.

      • Podbean AI Podbean AI

        AI-Enhanced Audio Quality and Content Generation.

      • Blog to Podcast

        Repurpose your blog into an engaging podcast.

      • Video to Podcast

        Convert YouTube playlists to podcasts, videos to audios.

    • Monetization
      • Ads Marketplace

        Join Ads Marketplace to earn through podcast sponsorships.

      • PodAds

        Manage your ads with dynamic ad insertion capability.

      • Apple Podcasts Subscriptions Integration

        Monetize with Apple Podcasts Subscriptions via Podbean.

      • Live Streaming

        Earn rewards and recurring income from Fan Club membership.

    • Podbean App
      • Podcast Studio

        Easy-to-use audio recorder app.

      • Podcast App

        The best podcast player & podcast app.

  • Advertisers
  • Enterprise
  • Pricing
  • Resources
    • Help and Support
      • Help Center

        Get the answers and support you need.

      • Podbean Academy

        Resources and guides to launch, grow, and monetize podcast.

      • Podbean Blog

        Stay updated with the latest podcasting tips and trends.

      • What’s New

        Check out our newest and recently released features!

      • Podcasting Smarter

        Podcast interviews, best practices, and helpful tips.

    • Popular Topics
      • How to Start a Podcast

        The step-by-step guide to start your own podcast.

      • How to Start a Live Podcast

        Create the best live podcast and engage your audience.

      • How to Monetize a Podcast

        Tips on making the decision to monetize your podcast.

      • How to Promote Your Podcast

        The best ways to get more eyes and ears on your podcast.

      • Podcast Advertising 101

        Everything you need to know about podcast advertising.

      • Mobile Podcast Recording Guide

        The ultimate guide to recording a podcast on your phone.

      • How to Use Group Recording

        Steps to set up and use group recording in the Podbean app.

  • Discover
  • Log in
    Sign up free
The Clever Investor Property Podcast

The Clever Investor Property Podcast

Education:How To

Did we just hit the peak on interest rates?

Did we just hit the peak on interest rates?

2023-07-13
Download

The RBA's decision to keep interest rates unchanged at 4.1% was a welcome relief.

If we consider the CPI from January to May on an annualized basis, it is now below 2.8%. Additionally, there are still 12 previous rate hikes that have not fully impacted the economy.

Over the 12 months leading up to May 2023, inflation has significantly decreased from 6.8% to 5.6%, with a peak of 8.4% in December 2022.

This decline can largely be attributed to the base effect, where current prices are compared to higher prices from the previous 12 months.

Although it may not be a popular opinion, we believe that inflation will decrease more rapidly than what most people anticipate.

Historical trends show that extreme spikes in inflation tend to have a reflexive effect,

Within economics, reflexivity refers to the self-reinforcing effect of market sentiment, whereby rising prices attract buyers whose actions drive prices higher still until the process becomes unsustainable. 

So put simply, they typically decrease as rapidly as they increased.

When the June CPI figures are released this month, we can expect to observe a sharp decline in inflation, provided there are no unexpected shocks.

While the RBA's current thinking may be unclear, one thing is certain: the pressure for further interest rate increases is diminishing, especially considering that the full impact of previous rate hikes is yet to be fully reflected in the data.

Many industry experts often compare interest rate levels in Australia to those in other countries based on a given level of inflation.

They argue that Australia's interest rates are not high enough given the inflation levels.

However, they tend to overlook the fact that Australia is one of the most vulnerable economies to changes in interest rates worldwide.

This vulnerability is primarily due to our substantial levels of household debt relative to disposable income, along with a majority of mortgages being on variable rates.

In comparison, the US has 90% of mortgages on 30-year fixed rates, with a considerably lower overall household debt level.

Higher interest rates tend to impact regional banks, commercial real estate, small businesses reliant on bank loans, and unprofitable tech companies more than households in Australia.

The risk of a recession remains significant, leading to questions about whether the RBA is adopting a strategy similar to that of the US Federal Reserve.

Despite the official mandate of promoting maximum employment and stable prices, every rate hiking cycle in the US has historically resulted in some form of economic disruption.

By analyzing their actions rather than their words, we might mistakenly perceive this as a deliberate tactic.

Creating some sort of economic failure allows for a resumption of rate cuts in an environment where inflation does not initially flow into general goods and services as measured by the CPI.

Instead, inflation would primarily manifest in asset prices, a consequence that policymakers seem unconcerned about.

Is an intentional plan ? or simply a result of incompetence?  It doesn’t fundamentally change the situation.

It is worth noting that historically, the first rate cut has often signalled the beginning of a bull-run in the property market.

A bull-run or bull-market is an period of time when prices rise and investors are optimistic. 

If on you daily walk with your dog see's you face to face with a real bull....we recommend you run.

And after that hit the like button please.

view more

More Episodes

What is Build-to-Rent
2022-09-07
Rental Crisis ? or have we just swung back to pre-pandemic
2022-09-01
Event invitation: Wealth Through Property Brisbane 30th Aug
2022-08-29
Have we already reached peak inflation? and what might this mean for the property market
2022-08-24
What is property management? Why not collect the rent yourself??
2022-08-17
What is a Sunset clause? and will it keep the romance in your investment?
2022-08-10
What simple preparations can you do during the year ?
2022-08-04
What is a Trust? and do I need one?
2022-07-27
Buying property with Friends ? Brilliant idea or run for the hills
2022-07-20
What’s the 3 main things banks look for in your application?
2022-07-13
Natural Disaster Support
2022-07-06
Rentvestors: How to find a great place to rent
2022-06-29
Fixed rates: Have I missed the boat ??
2022-06-22
Rates Gone Up, Do Rents Go Up???
2022-06-15
The Deposit: What’s it for? How do you Pay it? and Why ???
2022-06-08
Rentvesting: ’Why Didn’t I Think of that Sooner’
2022-06-03
Lenders Mortgage Insurance is a BFF, Not a Big F Monster
2022-05-25
What on earth are Financial Advisors and Planners
2022-05-17
To Fix or Not to Fix, that is the Question.
2022-05-12
The Simple Interest Rate Summary: Don’t Panic
2022-05-04
  • ←
  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • →
012345678910111213141516171819

Get this podcast on your
phone, FREE

Download Podbean app on App Store Download Podbean app on Google Play

Create your
podcast in
minutes

  • Full-featured podcast site
  • Unlimited storage and bandwidth
  • Comprehensive podcast stats
  • Distribute to Apple Podcasts, Spotify, and more
  • Make money with your podcast
Get started

It is Free

  • Podcast Services

    • Podcast Features
    • Pricing
    • Enterprise Solution
    • Private Podcast
    • The Podcast App
    • Live Stream
    • Audio Recorder
    • Remote Recording
    • Podbean AI
  •  
    • Create a Podcast
    • Video Podcast
    • Start Podcasting
    • Start Radio Talk Show
    • Education Podcast
    • Church Podcast
    • Nonprofit Podcast
    • Get Sermons Online
    • Free Audiobooks
  • MONETIZATION & MORE

    • Podcast Advertising
    • Dynamic Ads Insertion
    • Apple Podcasts Subscriptions
    • Switch to Podbean
    • YouTube to Podcast
    • Blog to Podcast
    • Submit Your Podcast
    • Podbean Plugins
    • Developers
  • KNOWLEDGE BASE

    • How to Start a Podcast
    • How to Start a Live Podcast
    • How to Monetize a Podcast
    • How to Promote Your Podcast
    • Mobile Podcast Recording Guide
    • How to Use Group Recording
    • Podcast Advertising 101
  • Support

    • Support Center
    • What’s New
    • Free Webinars
    • Podcast Events
    • Podbean Academy
    • Podbean Amplified Podcast
    • Badges
    • Resources
  • Podbean

    • About Us
    • Podbean Blog
    • Careers
    • Press and Media
    • Green Initiative
    • Affiliate Program
    • Contact Us
  • Privacy Policy
  • Cookie Policy
  • Terms of Use
  • Consent Preferences
  • Copyright © 2015-2025 Podbean.com