INSIDER KNOWLEDGE

We’ve asked Cheree Pedley, La Trobe Financial’s Head of Investor Operations, to give us some insight into what we can expect from interest rates, and why we should pay attention. Any investment should be made with an eye to the future. The same applies to loans: it’s all about maximising your returns and protecting yourself from risks. Right now, interest rates are at record lows. That’s a relief for borrowers but it’s terrible for investors who are receiving low returns on interest-based investments. So what can you do about it? As an investor, search for alternatives that pay a decent return, and be careful about investments that “lock” you into current rates. It might be some time before rates move upwards, but when they do fixed rate investments will look less attractive. If you are a borrower, pay down your debt. If higher rates would put you under pressure, consider switching at least part of your debt to a fixed rate.