It's both Good News ... and Bad News!

Posted on 31. Aug, 2009 by Chris Lang in Economic Issues, Global Scene, Interest Rates

Government statistics show that business investment rose by 3.3% during the three months to June — most of it accounted for by a massive 20% surge in Victoria.

This increase is the latest confirmation that Australia has entered its recovery phase — emerging from the global turmoil, without experiencing a technical recession.

But what does this mean?

In an earlier article, you read about the likelihood of future increases in interest rates — which will probably start later this year. And this could see mortgage rates jump about 2% by the end of 2010.

Given the high probability of inflation running out of control, you need to think seriously about locking in your interest rates — ideally for the next 6 to 8 years.

Tags: business investment, chris lang, global turmoil, government statistics, inflation, Interest Rates, interest_rates, likelihood, mortgage rates, probability, recession, three months, victoria