Results: Advice

Inflation has peaked, and with business and consumer confidence readings at appallingly low levels the weakness in the economy this year will see inflation fall away. But can we safely say that fixed interest rates have peaked as well?

The new year of 2023 is upon us and the big concern for people who did not lock their mortgage interest rate in for five years when rates were 3% or thereabouts over 2020-21 is how much higher fixed rates will go as the year progresses.

I am 90% confident that fixed rates are now at their cyclical peaks. The chances are very strong that the fixed rates for two years and beyond will be falling before the middle of 2023. - Tony Alexander, economist

Inflation numbers have come out higher than expected offshore so expectations have grown that central banks will continue to raise their interest rates at a rapid pace. But therein lies some important information.