Kelly+Partners Finance Update

In the May meeting, the Reserve Bank of Australia decided to once again leave the official cash rate unchanged at 1.5 per cent with the last rate move back in August 2016. With a combination of retail deflation and continued weak wages growth still impacting economic growth, the Reserve Bank has signalled that we can expect to see rates stay where they are for the time being. They have indicated however that it expects the next rate move to be an increase and is concerned about the potential shock that this may cause the economy.

Banking Royal Commission 

The royal commission will run through the rest of this year. An interim report is due in September, and a final report is due to be released in February 2019. The commission has turned its focus to the SME sector and we have continued to hear more stories of poor lending practices. Please consider how the fallout from the royal commission will affect small business borrowers:

  1. It will become even harder for SMEs to secure finance.
  2. Banks will take longer to decision loan applications.
  3. The cost of finance will increase off the back of increased regulation.

What should SMEs do? 

The good news is that more financing options are becoming available to SMEs and no longer is it a matter of having little choice outside of the major banks. The challenge will be to make sense of all the offerings in the SME finance space and that’s where Kelly+Partners Finance can assist. 

Contact Kelly+Partners

With a deep understanding of the links between our clients’ personal and professional lives, Kelly+Partners offers a coordinated solution across a range of financial services: accounting, tax, superannuation, wealth management, finance, estate planning assistance and family office services.

Please contact your local Kelly+Partners office to discuss how this article might impact you.

LEGAL NOTICE: General Advice Only: This document is current at May 2018 unless stated otherwise and does not constitute investment research or an offer or recommendation. The information contained in this document is general information and market commentary only and does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it. Kelly+Partners recommends that investors seek independent advice before acting on this information. Information provided by third parties has not been independently verified and neither Kelly+Partners nor any other related entity of Kelly+Partners is responsible for the accuracy or completeness of, or endorses, such information. Investments are subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested. Kelly+Partners does not stand behind or otherwise guarantee the capital value or performance of any fund. Any projections in this document are predictive in character and may be based on incorrect assumptions. Results ultimately achieved may differ materially from the projections. Past performance is not a reliable indicator of future performance.