Uncertainty. It’s a word that continually crops up by those running our economy.
Reserve Bank supremo Philip Lowe has been bandying it about for more than a year, and he’s still no clearer on where we are headed.
Hardly reassuring, but it’s absolutely on the money.
Depending on who you listen to, either we are on the cusp of a huge breakout in inflation or we are stuck in a deflationary rut from which we’ll struggle to emerge.
Global share markets are either facing a spectacular meltdown or are fair value, given the strength of the global recovery from the pandemic-induced recession.
As for housing, well, let’s just not go there.
But amidst all this confusion, there is one thing becoming clearer by the day. Interest rates, currently at the lowest level in history, have bottomed.
The argument about rate rises now merely is a debate about when.
Increasingly, chances are that the timing on rate hikes will be much sooner than we have been led to believe.