The RBA has happily given business and home borrowers another reprieve by leaving interest rates on hold for the sixth straight month at 4.75%.
That’s good news. Economic conditions and particularly consumer confidence remains fairly patchy at present and another interest rate rise would have pushed people back into their shells again.
However, my Taskmaster sixth sense (and plenty of economists) tell me that rates are likely to rise in the next six months, probably by at least 50 basis points. That would take the official cash rate to 5.25% and boost your own business loan and overdraft rate by at least half a percent.
How will that impact your business? If you don’t know now, find out by:
- Calculating how your interest costs will change and what impact this will have on the bottom line.
- Calculating the potential impact on sales if your customers are impacted by higher rates.
- Calculating the potential impact on income if you have money on term deposit or similar.
- Calculating cashflow scenarios is payment terms stretch out.
Do a best, middle and worse-case plan. Forewarned is forearmed.
Get it done – today!