8 Nov 2023
Recession Probability Indicator
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
The RBA (Reserve Bank of Australia) increased interest rates yesterday by 0.25% to bring the official Cash Rate up to 4.35% in order to reduce inflation.
The interest rate chart above points to a peaking in central bank interest rates except for Australia which is expected to go higher again in 2024.
Will this new interest rate increase tip us into a recession?
The answer is that we cannot be certain.
The attached chart is the latest Worldwide Recession Probability indicator and it puts Australia right on the fence at 50% likely.
Click for chart.
The key to remember is that even when Australia’s does go into the next recession, it will present investors with an opportunity to buy more quality asset at a discounted price.
If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.