All this makes interest rates an essential tool for the RBA to manage inflation and the economy in general. If it thinks the economy is growing too rapidly in a way that cannot be sustained, the RBA will look at increasing interest rates to slow it down. On the other hand, if it thinks the economy is growing too slowly, it may reduce interest rates to encourage economic growth.

keeping an eye on interest rates is important for anyone involved in property investment, even if you aren’t planning an immediate investment. Some sections of the national press will always be happy to shout about greedy banks, bad economic times, and doom and gloom for householders, but it’s more important you get a balanced and objective view.

Did you know rising interest rates aren’t always a bad sign? In fact, they can be a signal that the economy is on the move once more. Then, as confidence grows, more positive business and investment decisions are made, which will drive the economy forward, which could set property prices soaring by 20% in a year, just as they’ve done before.

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