Fixed vs variable

Interest rates have increased significantly in the past few months and aren’t tipped to slow down anytime soon. They sat at a record low 0.1% for more than a year to protect Australia’s economy through the pandemic.

As a result of record low rates and record stimulus spending, inflation is creeping up: it currently sits at 6.1% (June quarter) and is tipped to get as high as 8% by next year. The Reserve Bank is using interest rates in an attempt to curb spending and to reduce the heat in the economy.

The ASX 30 day