June 2018 - Bongiorno Financial Update
What's in this issue?
The RBA has left interest rates on hold for 21 months.
A rate hike is now unlikely until 2020: as growth is likely to remain weaker than the RBA expects; wages growth and inflation are likely to remain low for longer; bank lending standards are tightening further, and; house prices in Sydney and Melbourne are falling with more downside ahead. In fact, raising rates at time of falling house prices could be dangerous.
For investors: bank deposits will continue to offer poor returns; Australian bonds offer better returns relative to global bonds; and remain wary of the $A.
We hope you enjoy this issue.
Kind regards,
ANTOINETTE BONGIORNO
LL.B. B.Com. CFP DipFP A.S.A.
Level 2
431 St Kilda Road
Melbourne VIC 3004
ph) 03 9863 3316
fax) 03 9820 2518
Australian Financial Services Licence No 238977