A Time To Put Up Or Shut Up ?

The Reserve bank of Australia meets tomorrow with the market thinking there is a very low chance interest rates may rise when considered by the Banks policy committee.  The markets are currently only considering a 25 basis point interest rate rise during the next 12 months.  This is despite various statements referring to a more aggressive policy tightening to keep inflation in check.

However, cooler economic global growth in the past month could be the reason the RBA will not be in a hurry to raise rates.  At home there are many mixed economic signals that continue to affect our patchwork economy. Mining and resources exports continue to be strong despite inflation and reduced GDP worries from China.  Job numbers in the US were disappointing last week with housing and manufacturing here less resilient with also the threat of increased wage pressure. There are also continued concerns of some of the European Union countries will default on their sovereign debts added further pressure to their banking system.

But the last retail sales reports showed a 1.1 per cent gain in sales during April indicating consumer spending is holding up better than previously thought. This is in the same week that the economy reported its weakest quarter of economic growth in two decades.  All very mixed and
causing some concern and also at the end of the financial tax year when many of us are thinking of tax and planning for next year’s tax.

It should be the time for a fresh start, keeping tax records up to date and ensuring with the help of an online tax manager for personal tax and PAYE that the taxman is not overpaid as we can’t be too sure of our prosperity during the next 12 months.