Opinion
Despite strong cash rates, equities are more attractive in long run
Don’t be tempted by higher interest rates to invest in term deposits and wait for the right moment to shift back to shares.
Alexis GrayContributorAustralia’s headline inflation rate is trending lower as higher interest rates continue to dampen consumer demand. That’s positive news for the economy, although getting inflation down to the Reserve Bank of Australia’s 2 per cent to 3 per cent target band could take at least another 12 months.
Although the RBA has kept rates on hold for now, inflation is likely to remain sticky. As such, it’s likely the central bank will still need to raise the cash rate one or two more times to ensure inflation returns to the target range.
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