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The Adfinity Financial Informer – 2nd Quarter 2022
The Adfinity Financial Informer – 2nd Quarter 2022
Inflation is increasing and interest rates are going up. It is not unusual for them to move in the same direction because interest rates are the primary tool used by our Reserve Bank to control inflation. Whilst higher interest rates are not happy news for many, it is nevertheless good news for some. Negative real yields have not been beneficial for pensioners and income funds that rely on interest rates. The only asset class that benefits from higher interest rates is cash and for some, that is very good news indeed.
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