A towering rate of return

REAL-LIFE PROBLEMS, INNOVATIVE SOLUTIONS

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Background: In recent months, as the market dealt with conflicting data, we have seen fluctuations in expectations for Australian interest rates, albeit with an overall decline. The chart below shows the three–month cash rate back to May of this year.

The last set of employment figures in October showed 42,000 fewer people in employment, and while this is expected to have stabilised somewhat at the next release, it hints at the underlying issues in the economy. Meanwhile, although inflationary

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