It's been a busy start to 2021 on the economic front as the Australian economy moves into post-COVID recovery and Governments weigh up the results of different measures introduced through 2020. We have a number of issues to cover off which have been making news lately and may impact or influence your business equipment and vehicle decisions.
Rate Rise Speculation Quashed
As did no doubt many other keen observers of economic news and indicator, with raised eyebrows we read several pieces where some economic analysts/journalists speculated that interest rates would or should be increased. The reasoning behind the claims were the heating up in the housing market with prices increasing at a rapid rate in key regions. It was reasoned that a rise in interest rates would arrest this trend.
If you saw or heard similar stories and didn’t have the opportunity to investigate further, don’t worry. The Governor of the Reserve Bank, the authority responsible for setting the official interest rates, Philip Lowe, quickly moved to quell this suggestion while addressing a business summit.
Dr Lowe stated that despite the improving overall economy, the RBA was not likely to increase the official cash rate until there was stronger wages growth and a significant drop in unemployment. Timing-wise, he mentioned as far ahead as 2024. He said he was looking to inflation remaining stable in a band of 2-3% which would mean unemployment significant below the February rate.
So the RBA has confirmed its intentions to stay on its present course.
For both business and personal finance that should mean historic low lending levels for some time. It’s worth noting that the majority of both personal loans and business finance deals secured through Jade Finance are at our cheap fixed interest rates. A fixed interest rate on loans for cars, vehicles, equipment, boats, bikes, caravans and trucks means the loan remains at that level for the fixed loan term. So if you have a current Jade Finance loan in place, a shift in interest rates would not affect your loan repayments.
Economic Data: December 2020 Figures
With some of the government stimulus measures winding down in some aspects over the latter part of 2020, there was possibly greater interest to see how that would impact the December GDP and other economic data.
The news was better than expected, to quote the Federal Treasurer Josh Frydenberg. In announcing the release of the data, the Treasurer said the results were much better than anticipated with the economic growing 3.1% in the quarter, meaning two consecutive quarters of growth. While he acknowledged that there was still a long way to go with the COVID-19 recovery with many sectors still hard-hit, the results were encouraging. He noted that both business and consumer confidence indices were up and over 300,000 jobs were added to the economy in the quarter.
Business Equipment Investment
What could all this mean for your business? Clearly it will depend on your sector but with confidence on the rise if could mean your customers will be better-prepared to purchase your goods. A sign perhaps to implement those growth or expansion plans which perhaps have been on the back burner, with an investment in new equipment.
Jade Finance provides finance for a broad range of business equipment. Our loans are not limited to a definition of equipment as heavy duty machinery and yellow goods, though the construction and associated industries are a major part of our business.
Through us, you can seek loans for IT, computer systems, electronics, updates to technology, office fit-outs and fittings to cater for the new work style, medical devices, copying and imaging equipment and many other items. With the low interest rates we can achieve across all our loan types, the achieving cost-effective and workable finance solutions can be a reality for many businesses.
If you’re in doubt as to whether the equipment you are considering is included under our equipment finance category, a quick call to us will have your question answered.
Government Schemes and Supports
While the JobKeeper scheme will expire on 31 March 2021, the Federal Government has announced an extension of the wage subsidy scheme for apprentices and trainees. This has now been extended to include those that sign into the scheme by 30 September 2021.
In breaking news, just as our team is completing our regular blog articles, the Prime Minister has announced a $1.2 billion package to support the extremely hard-hit aviation and tourism sectors. We’ll take our time to absorb and analyse the detail and see how this may work in with how Jade Finance provides support to business with cheaper business finance.
Preparing for that Getaway
With the Easter/autumn school holiday season approaching, if you are mulling over buying a boat or caravan to enjoy your holidays, you’ll want to get into action and contact us to arrange a loan for the purchase. Our services are structured to deliver quick quotes, fast approvals and prompt settlement for all those last minute purchases.
For business finance and consumer loans, contact Jade Finance Call 1300 000 008
DISCLAIMER: THE INFORMATION IN THIS ARTICLE IS PREPARED SOLELY FOR INFORMATION PURPOSES AND IS NOT INTENDED AS FINANCIAL ADVICE OR AS THE SOLE BASIS FOR MAKING FINANCIAL DECISIONS. THOSE REQUIRING ADVICE SHOULD CONSULT A FINANCIAL ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISREPRESENTATIONS OF PRODUCTS, POLICIES AND INFORMATION OR ERRORS IN THE CONTENT AS REFERRED FROM OTHER SOURCES.