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Australia is currently experiencing historic inflation levels brought on by the COVID-19 pandemic, the Ukrainian crisis, and strong consumer demand. Governor Philip Lowe warned that inflation is projected to increase further over the coming months, peaking at around 8% later this year.
In his monetary policy speech, RBA Governor Philip Lowe warned that “a further increase in inflation is projected over the months ahead, with inflation currently forecast to peak at roughly 8% later this year.” Despite record employment levels, many Australians need help to make ends meet due to inflation, characterised by a gradual rise in prices and a decrease in purchasing power.
The Impact of Inflation
This inflation has significantly impacted everyday Australians, with prices gradually rising and purchasing power decreasing. Businesses have passed on higher costs to customers, resulting in a considerable increase in the cost of living.
For example, unleaded petrol cost 30c a litre on average in Victoria in 1980, but today a fuel tank can cost up to $1.99. The issue is further compounded by stagnant wages, which have not increased in the past five years.
Analysts suggest that Australians respond to rising inflation and interest rates by investing in options that offer capital stability during periods of high inflation, such as fixed income solutions and term deposits.
Beating Inflation With Fixed Income Accounts By Income Direct
One such product that is believed to be effective in beating inflation is the Fixed Income Accounts offered by Income Direct. This product is popular among savvy investors who understand the importance of staying ahead of inflation. Clients receive a competitive interest rate for 3-120 months and the option of monthly interest payments or compounded returns.
Fixed-interest solutions like Income Direct’s Fixed Income Accounts offer a higher return of up to 9.70% annually. They pay out a set level of cash flows, typically in monthly interest payments, which are known in advance and remain fixed.
Income Direct deploys capital across a diverse range of high quality opportunities. The company directly provides debt and equity solutions to businesses seeking access to growth capital. By investing directly, Income Direct is able to offer clients competitive returns for access to their capital.
Why Choose Income Direct?
Many Australians are looking for ways to ensure that inflation does not erode their retirement savings or emergencies. Keeping money in a low-yield savings account is only sometimes the best option. However, moving away from bank deposits can mean taking on greater risk.
To address this, choosing an investment firm that invests directly, like Income Direct, rather than a firm that invests via other funds can be an effective way to stay ahead of rising prices.
The Importance of Personal Service
Income Direct is popular among investors due to its focus on customer service. The company assigned each client a personal, Australia-based Account Manager with substantial investment experience to answer any questions. They can provide all the necessary information to make informed decisions and attend to general account management enquiries.
With its innovative product solution, competitive fixed interest rates and a commitment to personal service, Income Direct is positioned to become a compelling choice for beating inflation and rising interest rates.
