Flood Crisis Leading to Interest Rates Increase

interest rate increase

As the rain has ceased and the flood waters have begun receding, we as a country are starting to feel some of the affects from the flood crisis. At your local market you may have noticed prices in the produce section are beginning to rise and are becoming scarce. For example, mangoes are nearly impossible to find. Along with mangoes, tomatoes and lettuce have become more expensive. Other produce starting to see changes are zucchini, bananas, broccoli, sweet potatoes, capsicum and watermelons.

The major supermarkets, Woolworths and Coles, have released statements claiming they are in the process of identifying whether it is more cost efficient to start importing primary produce to avoid massive influx in prices. As these two supermarket giants control 45% of the fruit and vegetable sales nationally, they play a major part in the control over prices.

In addition to the immediate affect of an influx of prices, there is also key concerns on how the farmers will be able to bounce back to plant the winter staples such as corn, cabbage, potatoes and chillies. With the floods washing away the majority of the crucial topsoil, the forecasts are declaring all crops will be low this year.

If the prices on all produce does skyrocket and nothing is done to counteract this, fruit and vegetable prices will force inflation upwards. With the already looming rumours of interest rates increasing in March, the flood crisis will undoubtedly make those suspicions true.

With inflation around the corner, interest rates will move upwards which may affect your current mortgage or additional debt, such as credit cards or personal loans. In order to avoid this increase and lock into the lowest rate you can – you should look into a debt consolidation or refinancing your loans now while interest rates are still decent.

With a debt consolidation at Australian Lending Centre, you will be able to roll all of your debt into one loan on a fixed interest rate that will not be affected by inflation. Through this option you will also be able control and pay off your debts faster since you will be using one low rate and not focusing on various payments with varying interest rates.

If you want assistance with your debt call the Australian Lending Centre on 1300 138 188 today to speak with a debt consolidation consultant. Alternatively, fill out the enquiry form to the right and a consultant will contact you shortly.

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