It is a truth universally acknowledged that technology companies’ fortunes are disproportionately tied to interest rates. There were many founders nervously watching the Reserve Bank of Australia’s November meeting, who were left disappointed when the cash rate was held at 4.35 per cent – maintaining a 12-year-high.
While we’re unlikely to see further hikes, the RBA minutes released last Tuesday made it clear that Australians can expect interest rates to remain high for some time. Tech companies and start-ups now need to stop thinking wishfully about rate relief and take decisive action.