November 2023 Insights

It’s November, and all eyes were on the Reserve Bank’s interest rate decision. After a series of pauses, the RBA delivered a 0.25% increase in interest rates on Melbourne Cup Day, taking the official cash rate to 4.35%. The aptly named “Without A Fight” romped home in the Melbourne Cup, and banks are likely to seamlessly pass on the higher interest rates to mortgage holders.

Investors are keeping a close eye on oil price movements over fears of an escalation of conflict in the Middle East. The World Bank has warned that if the conflict widens to other countries, oil prices could rise by up to 75% in 2024. In the meantime, Brent crude fell slightly in October.

The Australian dollar ended October close to its lowest levels in a year and far below its peak of almost 69 cents in July.

Inflation rose again in the September quarter, but growth was still lower than last year. CPI increased by 1.2% during the quarter and 5.4% annually.

Unemployment fell slightly in September to 3.6%, although that was largely caused by a number of people leaving the labour market to retire or for other reasons.

A strong rise in retail trading in September, the largest since January, might be a good omen for Christmas sales, although spending for the year has been historically low.

China’s economic stimulus and improved outlook saw the biggest jump in iron ore prices in a single month to around $122.

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.