What does it mean for you as a business or home owner if interest rates change. Is it good? Is it bad?
High interest rates means people save money rather than spend it. Also retirement funds, insurance companies and educational endowments benefit from higher interest rates, as does anyone who depends on bond investments for his income. When interest rates are high because inflation is strong, people tend to buy high end items like diamonds, gold and art as hedges against inflation. High interest rates are not always accompanied by rapid asset price appreciation.
Low interest rates encourage spending and investment into property. Banks try and encourage lending so when interest rates go up again they make a lot of money.
If you have any questions about your interest rates then give Jon a call on 0407 314 031.