March was noisy. A second consecutive rate hike, mixed global signals, and an EOFY deadline creeping up faster than most people realise. Here’s what matters for your wealth right now.
The RBA means business
The cash rate is now 4.10% following the March meeting, the second consecutive hike after February’s move to 3.85%. The board was split five to four, but the Governor was clear. The debate was about timing, not direction. With CPI sitting at 3.8% and underlying inflation ticking up to 3.4%, the board sees more work ahead.
Rising fuel prices off the back of the Iran conflict have added fresh pressure to an outlook the RBA was already uncomfortable with.
If you have variable-rate debt, a refinancing coming up, or plans to borrow, now is the time to stress test your position. Not with fear, with clarity. That’s exactly the conversation we’re here to help you have.
The data and lived experience don’t match
Jobs are steady, with unemployment holding at 4.1% and wages growing at 3.4% over the year. The ASX hit record highs through reporting season, and the Australian dollar reached a three-year high of USD 0.71. On paper, things look solid.
But consumer sentiment fell 2.6% in February to 90.5. People are feeling the squeeze even while they’re employed. That gap between what the data says and what people experience is something I pay close attention to, because it’s usually where the real planning conversations need to happen.
Volatility is not the same as deterioration
Markets moved. They’ll keep moving. Gold is at $2,940, Brent crude at $84, and geopolitical tension through the Strait of Hormuz remains something to watch for anyone with exposure to energy assets.
But the underlying earnings picture remains sound. European manufacturing crossed back into expansion territory for the first time in 44 months. Japan’s decisive election result was welcomed by markets. The long-term themes of AI investment, energy infrastructure and reshoring are intact. Volatility and deterioration are not the same thing and keeping that distinction clear is one of the most valuable things a good financial partner can do for you.
EOFY is closer than it feels
Super contributions, capital gains positions, and bringing forward deductions. These decisions need to happen before 30 June, and they take more lead time than most people allow. If we haven’t talked through your EOFY position yet, reach out now. There’s still time to act well, but that window is narrowing.
Three things worth doing this week
- Model your repayments at 4.35% or higher. Knowing your buffer matters more than predicting the next move.
- Check your investments still match your actual time horizon, not the one you had a few years ago.
- Start your EOFY conversation. Super, CGT, deductions. Don’t leave it to June.
Markets will keep moving. Your job is to stay focused on what you’re building. Ours is to make sure your plan keeps pace.
If anything, here has raised questions; reach out. That’s exactly what we’re here for.
Market data and scenario insights sourced from Akambo’s Monthly Market Wrap. This update is general information only and does not take into account your personal objectives, financial situation or needs. Please seek personalised advice before acting on any information provided.
