Michael’s Musings Facebook Posts – Latest Financial Insights & Musings

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Welcome to Michael’s Musings Facebook page feed. Here, you’ll find all our latest posts, thoughts, and updates on financial planning, current trends, and practical advice.

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Michael's Musings

Michael's Musings

Musings on money and finance, from a Financial Planner based in East Perth, Western Australia. Nothing on this Facebook account is to be considered personal financial advice.

4 months ago

Michael's Musings
Are Australian interest rates "high"?Depends on your perspective. Most of the authorities I encounter are of the opinion that it’s only a matter of time before interest rates fall. Again, most authorities suggest this fall will be a logical outcome of high Developed Nation debt levels for both households and governments. The argument is that developed nation economies cannot tolerate higher interest rates without triggering recessions which would lead to central banks logically lowering official cash rates to try and stimulate faltering economies.But interest rates have already lifted further and stayed higher for longer than most forecasters expected would be possible. And there are arguments to be made that the ‘neutral rate’ for Australia has still not been reached. If this is true then interest rates should be higher still. At least in the short term.This post isn’t about making any predictions for interest rates. It’s simply to present a picture. How do current interest rates look when considered in the very long term? My post picture is Australia’s 10 year bond yield over the past 50 years. That seems reasonably long-term to me. Putting aside all the arguments that this or that cannot happen in the world of interest rates, how do you view current interest rates? Are they low or high or just right? See MoreSee Less
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