The Australian Bureau of Statistic (ABS) released the February employment figures on 16 March. The data reveals the unemployment rate dropped by 0.2% during the reporting period. The fall comes after a rise in unemployment for January. A result which could have implications for the April Reserve Bank (RBA) interest rates decisions. The unemployment rate has always been a key consideration for the Board, along with the inflation rate and global issues.
With the rate rising in January, there was an expectation from some analysts that the RBA would increase rates by a further 0.25% in April on the back of a strengthening labour market. But this data, released at the same time as issues with the global banking sector are unfolding, has caused expectations to change in the markets.
More on that and the significance of Truck Finance interest rates below. First, we cover the latest report from the ABS for operators keen to know when the tightening in the labour market may start to ease and they may fill vacant positions.
Truck Finance Interest Rates
The February drop in unemployment holds significance for businesses and also has implications for the RBA’s April rate decision, which could subsequently influence Truck Loan Rates. The dissemination of unemployment data usually triggers discussions about how the latest statistics might shape the RBA’s Interest Rate Determining Factors. However, the unveiling of the February data, as noted earlier, has coincided with reports of significant issues in global banking.
This has led to some differing outlooks and opinions as to what the RBA may decide at its April decision. Some have said that the latest jobs figures indicate the RBA would proceed with a further 0.25% increase. Other commentary has looked at the combined influences of these jobs
figures and the banking crisis unfolding in the US and Europe. The opinion there is that the RBA will bring the pause on rates forward to April.
For example, Westpac has changed its outlook for the cash rate peak from 4.1% to 3.85% and some economists are expecting the RBA to call a pause to rate rises in April. The ANZ however, has held with its existing outlook and is expecting another two 0.25% cash rate rises.
If you're an operator planning to purchase a new vehicle with finance and need to meet the EOFY deadlines, the following scenarios may be of importance to you. If interest rates increase by 0.25% in April, it could result in higher truck financing rates. To help you find the best deal, you can use a Truck Lease Finance Calculator. Fortunately, Jade still offers competitive rates that could help you save money.
Jade's Truck Financing Solutions for Uncertain Times
If a pause for April is the RBA decision, then operators may be looking at a further month to lock in acquisitions and loans at the current rates. This may be of special interest to operators still keen to take advantage of temporary full expensing prior to the deadline with Refinancing Truck Finance Balloon or Residual and Chattel Mortgage Truck Financing.
The global scenario has been of major concern to the RBA Board and uncertainty is continually mentioned in this regard. When the Minutes of the March Board meeting are released on 21 March, we may acquire greater insight into the Board’s thinking in regard to both unemployment and the global economy.
For businesses exploring different financing options, Jade offers a comprehensive range of Truck Loan Products, as well as Rent To Own Truck Finance solutions to cater to various requirements and preferences.
For cheaper interest rates on truck finance, contact Jade Truck Loans on 1300 000 003
DISCLAIMER: THIS INFORMATION IS ISSUED PURELY FOR THE PURPOSE OF GENERAL INFORMATION PROVISION. IT IS NOT TO BE TAKEN AS THE ONLY SOURCE OF INFORMATION FOR BASING FINANCIAL DECISION-MAKING. THOSE REQUIRING FINANCIAL GUIDANCE AND ADVICE SHOULD CONSULT WITH THEIR FINANCIAL CONSULTANT OR ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISREPRESENTATION OF POLICIES, DATA OR ERRORS IN THIS CONTENT.