Collins & Co Wealth Management Newsletter – April

Interest rates are an important financial lever for world economies. They affect the cost of borrowing and the return on savings, and it makes them an integral part of the return on many investments. It can also affect the value of the currency, which has a further trickle-down effect on other investments.

So, when rates are low they can influence more business investment because it is cheaper to borrow. When rates are high or rising, economic activity slows. As a result, interest rate movements are also a useful tool to control inflation.

The changing times in Australia’s economic fortunes can lead to concern about whether you have the right investment mix.

As always, if you would like to discuss your investment strategy, don’t hesitate to contact our office.

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