June 2023 Insights

As the winter sets in and the end of the financial year approaches, it’s a good chance to spend some time tidying up and reviewing your finances.

The Reserve Bank of Australia has increased the cash rate by 25 basis points, bringing it to 4.10%. Cash rate increases, concerns over the US debt ceiling and the worry that the US Treasury may run out of cash, have affected local markets and the Australian dollar.

The dollar is at its lowest level in six months, at just under US65 cents, while the ASX200 ended the month nearly 3% down thanks also to weaker commodity prices. Energy and mining stocks led the falls. Brent Crude was down 7.5% for the month while iron ore prices hit a six-month low.

Inflation rose 6.8% in the 12 months to April, up from 6.3% in March and the number of housing approvals nosedived in April, down 8.1% after a 1.0% fall in March.

The rising prices have continued to dent consumer confidence. The ANZ-Roy Morgan Consumer Confidence survey has now spent 13 straight weeks at its lowest mark since the 1990-1991 recession. The survey reveals that only 7% of Australians expect good times ahead for the Australian economy in the next 12 months. With less money to go around, retail trade has plateaued over the past six months.

The latest unemployment figures show a slight increase to 3.7% in April and a slight decrease in the participation rate.

We understand that current economic conditions may feel daunting, but we’re here to help. During challenging times, financial guidance becomes even more crucial. If there’s something affecting your financial situation that you’d like to discuss, please don’t hesitate to reach out to our team.