P & J Financial Solutions - Finance Brokers

16/06/2026

The Reserve Bank Of Australia (RBA) has today announced that it will hold the official Cash Rate steady at its current level of 4.35%. The decision, was broadly forecast by major Bank Economists and Financial Markets, and pauses the current tightening cycle, which first began in February 2026. The RBA’s decision to maintain the Cash Rate at its current setting suggests it is prioritising a wait-and-see approach to ensure Inflationary pressures are not sustained and to assess the economic impacts of the three consecutive Cash Rate hikes between February and May.

The decision will provide temporary relief for Australia’s mortgagors, with Australian households already facing mounting financial strain; and the RBA’s Policy decision was unanimous.

In its post meeting statement, the RBA Board stated that it remained "focused on ensuring that Inflation does not become embedded once the impulse from higher oil prices has passed through. To achieve this, growth in demand needs to slow to reduce capacity pressures and help bring Inflation back to target”. Following the three increases in the Cash Rate target since the beginning of the year, financial conditions are now tighter than they were, and there are signs that the Economy is slowing as expected. “But inflation is still too high and the Board judged that it was appropriate to leave the Cash Rate target unchanged while it assesses the response to previous Interest Rate rises and the impact of the oil supply disruption” they commented.

From the perspective of P & J Financial Solutions, we believe that today’s Cash Rate Decision was expected and that the Monetary Policy Board is likely waiting for more data to become available to allow them to fully assess what impact the three consecutive rate hikes this year are having on Inflation. While Inflation remains above the RBA's 2%–3% target band, conditions still remain of a concern and need careful monitoring as a single pause does not translate into meaningful relief for households still adapting to a much higher repayment base. Today’s decision should be seen as part of a longer adjustment phase, not an indication that the cycle has turned in Borrowers’ favour.

We also believe that improving conditions in the Middle East and expected further clarity in relation to the Federal Budget changes could help ease rising uncertainty in the Lending Market.

Several economists have suggested that the RBA may now move to an extended Cash Rate “hold” period, driven by weakening Economic momentum (Australia’s Gross Domestic Product grew by just 0.3% quarter-on-quarter (to start 2026) and emerging slack in the Labour Market (the National jobless rate increased from 4.3% to 4.5% per in April). Evaporating Consumer and Business confidence, plummeting expectations, and stabilising Geopolitical and Global tensions have also been listed as key factors for the RBA ”pumping the brakes”. However, the RBA is also grappling with persistent pressures, with trimmed mean Inflation (the RBA’s preferred gauge) ticking upward from 3.3 to 3.4% in April, well above their target band of 2-3%.

All four major Banks lined up behind a unified call that the Cash Rate would remain unchanged in June – yet have offered strikingly different blueprints for what happens over the rest of 2026 and into 2027. The National Australia Bank Limited last week abandoned its expectation of a further 25-basis-point increase, recasting 4.35% as the height of the tightening cycle and forecasting the next move to be a cut towards the middle of 2027. The Commonwealth Bank of Australia and the Australia and New Zealand Banking Group Limited have been predicting an extended hold period since the May meeting – with both banks forecasting Cash Rate reductions to commence in the second half of 2027. Westpac Banking Corporation, which was anticipating a hold result in June, remains the outlier among the major Banks - and believes the RBA will hike the Cash Rate at its August and September meetings due to stubbornly high Inflation.

As the Interest Rate forecast remains somewhat “muddled”, many Australians are unknowing victims of ‘Rate Creep”, where Lenders raise rates for existing customers while offering discounted rates to new borrowers. This means they could be paying more in repayments than they should be, and this is where a review of options by an independent Broker becomes essential.

Therefore, all Borrowers (both personal and / or business) possess the utmost need for knowledgeable and experienced guidance and advice when reviewing and considering their financing options be they for new, increased, or additional finance; or simply a “health check” as the prevailing Economic climate will remain uncertain for some time. As such, please do not wait or hesitate to reach out to Paul or Jason at P & J Financial Solutions for such assistance, guidance, and advice in a professional and friendly manner.🤔

19/05/2026

A positive move from the Western Australian Government however one feels that the changes do not go far enough. 🤔

The State Government has announced budget measures in relation to the first home owner grant, first home owner rate of duty, and foreign buyers duty and the off-the-plan duty concession.

05/05/2026

The Reserve Bank Of Australia (RBA) has made its Monetary Policy decision for May 2026, responding to renewed Inflationary pressures and a mounting global oil shock, determining to lift the official Cash Rate by 25 basis points to 4.35%.

Today’s decision marks the third consecutive 25-basis-point hike for the year, continuing the tightening cycle that began in February when the RBA first lifted interest Rates to cool stubborn Inflation.

The last time the official Cash Rate was at 4.35%, it remained there for over a year - with the RBA increasing the Cash Rate in November 2023 to 4.35% and holding it there until February 2025. The RBA stated that today’s move was driven by persistently high Inflation, a firm Labour Market, and a rapid surge in fuel costs sparked by the military conflict in the Middle East.

The RBA Board reaffirmed its dedication to bringing inflation back into the 2.00% –3.00% target band, whilst it’s Minutes for the May rate decision read: “As expected, developments in the Middle East are having an impact on Inflation. Higher fuel prices are adding to Inflation and there are indications that this is likely to have second-round effects on prices for goods and services more broadly. This Inflation impulse is in addition to the high Inflation recorded around the start of 2026, reflecting capacity pressures in the Economy. In light of these considerations, the Board assessed that Inflation is likely to remain above target for some time and that the risks remain tilted to the upside, including Inflation expectations. It was therefore judged appropriate to increase the Cash Rate target”.

The RBA commented further: "The Board will be attentive to the data and the evolving assessment of the outlook and risks to guide its decisions. In doing so, it will pay close attention to developments in the global Economy and Financial Markets, trends in Domestic demand and the outlook for Inflation and the Labour Market. Having raised the Cash Rate three times, Monetary Policy is well placed to respond to developments, and the Board is focused on its mandate to deliver price stability and full employment. It will do what it considers necessary to achieve that outcome."

From the viewpoint of P & J Financial Solutions, today’s move comes after stubborn Inflationary pressures. The Consumer Price Index indicator for March came in at 4.6%, jumping from 3.7% in February, the largest monthly increase since the Australian Bureau Of Statistics began the series in 2017. While the RBA’s preferred trimmed mean Inflation held steady at 3.3%, it increased 0.8% over the quarter. As such, the RBA moved to increase the Cash Rate again rather than wait until the next Cash Rate decision in mid-June.

While the Commonwealth Bank of Australia, Australia & New Zealand Banking Group Limited, and the National Australia Bank Limited all predicted a single May hike followed by an extended period on hold, Westpac Banking Corporation is forecasting two more hikes in June and August of this year.

We believe that that the Cash Rate rise risks compound pressure in both the owner occupier and rental markets; and with the Federal Government set to release its Budget next week, maybe it is time for the Federal Government to provide support to home buyers; including walking back any potential changes to Capital Gains Tax and Negative Gearing, which, when coupled with rising Interest Rates could be an “economic calamity” .

Borrowing Capacity and Debt Servicing is still very tight and any Interest Rate increase is damaging that; with Borrowing Capacity decreasing. While the RBA would have been “hesitant to punish consumers already dealing with higher fuel prices thanks to the Middle East conflict,” the RBA Board is focused on “taming” inflation. Mortgage holders will be hoping the upward Interest Rate cycle will be a temporary one if the Iran war is resolved and fuel prices fall as the increased costs of fuel and the knock-on effects have impacted the budgets of everyone, and people have been tightening their belts.

More than ever the need for experienced and knowledgeable advice and guidance is now critical for all Borrowers (both personal and / or business) when reviewing and considering their financing options be they for new, increased, or additional finance; or simply a “health check” on their existing Lending facilities which is becoming of paramount importance in the prevailing Economic climate. As such, please do not wait or hesitate to reach out to Paul or Jason at P & J Financial Solutions for such advice, assistance, and guidance, assistance, and in a professional and friendly manner. 🤔

02/04/2026

It is that time of the year again as we head into Easter and the Team at P & J Financial Solutions, would like to take this opportunity to wish all of our Clients, Business Colleagues and Partners, and Families an amazing and wonderful Easter Holiday period. Celebrate in the way that is appropriate for you. Eat lots of Chocolate and Hot-Cross Buns, stay safe, and enjoy the Easter Bunny. HAPPY EASTER. 🐣 🍫 🐣

28/03/2026

Tonight Jalen Smith steps into the Boxing Ring for charity in the Perth Corporate Rumble. The venture and cause have a great deal of personal meaning for Jalen and P & J Financial Solutions are proud to be Jalen’s co-sponsor. Good luck Jalen. 🥊 💪 🥊

Motivated by crippling loss and a will to change, Jalen Smith is one of 30 fighters who will put it all on the line tonight.

23/03/2026

With new Scams seemingly occurring and increasing daily; please be cautious and vigilant everyone. If in doubt, just reach out to Paul and Jason at P & J Financial Solutions or Scamwatch. 🤔

Consumers have been warned that scammers are posing as brokers and financial service providers in a new wave of personal loan scams.

17/03/2026

The Reserve Bank Of Australia (RBA has moved to increase the Cash Rate by 0.25% to 4.10% today as it responds to renewed Inflationary pressures and a mounting Global oil fright. The decision which was widely anticipated by all as the RBA confronts stubborn Inflation and mounting price pressures from the Middle East driven oil shock; however the decision was narrowly split, with five members of the RBA Board voting to increase the Cash Rate while four members voted to leave it unchanged.

In its post meeting statement, the RBA said the decision to lift the Cash Rate again was driven by a pick up in Inflation and a view that price pressures were more entrenched than previously thought. “Information since the February meeting suggests that some of the increase in Inflation reflects greater capacity pressures. In addition, the conflict in the Middle East has resulted in sharply higher fuel prices, which, if sustained, will add to Inflation,” the statement read. “As a result, the Board judged that there is a material risk that Inflation will remain above target for longer than previously anticipated.”

The RBA also highlighted that, even as Inflation risks had intensified, wage and cost dynamics in parts of the Economy had been moderating with the Labour Market remaining tight by historical standards. Policymakers stressed that the decision reflected Global repricing of Monetary Policy paths, including in Australia. “In large part, higher Interest Rates reflect expectations for the path of Monetary Policy, which have risen in Australia and most other advanced Economies in response to the expected Inflationary implications of the conflict in the Middle East.” The statement underlined that the outlook was highly unpredictable, with the RBA weighing both the upside risks to Inflation from a more prolonged conflict and potential downside impacts to Global growth.

From the viewpoint of P & J Financial Solutions, we believe that there are material uncertainties about the outlook for domestic Economic activity and Inflation and the extent to which the RBA’s Monetary Policy is restrictive as a longer or more severe conflict could put further upward pressure on Global energy prices; and this may push up near-term Inflation.

After reviewing a broad range of data, the RBA concluded that Inflationary pressures had strengthened that Inflation is likely to remain above target for some time and that the risks have tilted further to the upside, in respect of Inflation expectations. Looking ahead, the RBA emphasised that it was not on a pre set path and would calibrate future moves based on how the Economy and Inflation evolved.

P & J Financial Solutions also feel that the Cash Rate increase was in line with expectations yet reinforced that the RBA was firmly focused on taming Inflation with the decision unsurprising given Inflation remains above target, and demand across housing and credit is still firm. With Inflation proving stubborn and global tensions lifting key costs, borrowers should be planning for the possibility of more tightening.

Although the latest Inflation and employment data isn’t due to be published until later this month, the RBA clearly prioritised pre-emptive action over a "wait-and-see" approach; although we feel that maybe the RBA should have resisted raising Interest Rates until the full Economic impact of the Middle East conflict is known as the Cost Of Living shock from higher fuel and transport costs had not yet fully hit households, and that the lag made an immediate hike risky. Not only will fuel costs increase but this will flow through to other supply chain increases and potentially add hundreds of dollars every month to the average household budget.

The RBA’s preferred trimmed mean Inflation for January came in at 3.40%, while headline Inflation held steady at 3.80% in the 12 months to January 2026 – far exceeding the Board’s 2.00% to 3.00% band. Unemployment has also been consistently low, coming in at 4.10% in January – heightening concern that Monetary Policy may not have been as restrictive as previously assumed.

All four major Banks lined up behind a unified call that the Cash Rate would be raised in March and May, after shifting their existing predictions of a single May rise. Looking further ahead, all four majors said the RBA would ease the Cash Rate after an extended period at a higher peak.

We are now amidst of very uncertain and volatile times (if we were not already) with Inflation, rising Interest Rates, exorbitant Fuel prices, and increasing Cost Of Living pressures front of mind for us all.

Accordingly, the need for experienced guidance and knowledgeable advice is now essential for all Borrowers (both personal and / or business) when reviewing and considering their financing options be they for new, increased, or additional finance; or simply a “health check” on their current Lending facilities which is becoming increasingly important in the present Economic climate. As such, please do not wait or hesitate to reach out to Paul or Jason at P & J Financial Solutions for such guidance, assistance, and advice in a friendly and professional way. 🤔

27/02/2026

An interesting read as we head into a Western Australian Long Weekend. 🤔

Apart from the unemployment story where the jobless rate is a strong 4.1%, a lot of the Albanese Government’s books look worryingly bad. What’s my educated take on this?

03/02/2026

In its first Board Meeting for 2026 The Reserve Bank of Australia (RBA) has announced that the official Cash Rate will be hiked by 0.25 percentage points, bringing same to 3.85% per annum.

This marks the first time the RBA has moved the Cash Rate since it reduced it to 3.60% on 13 August 2025 with the decision to increase the Cash Rate being unanimous. Today's decision will not be a surprise for many, but its effect on the Housing Market remains to be seen.

In a statement, the RBA Board said, "A wide range of data over recent months have confirmed that Inflationary pressures picked up materially in the second half of 2025. While part of the pick-up in Inflation is assessed to reflect temporary factors, it is evident that private demand is growing more quickly than expected, capacity pressures are greater than previously assessed and Labour Market conditions are a little tight. The Board judged that Inflation is likely to remain above target for some time and it was appropriate to increase the Cash Rate target."

From the perspective of P & J Financial Solutions, the February Cash Rate increase has been driven by a combination of a stickier-than-expected Inflation rate and a Labour Market that has remained tighter than many predicted.

The Consumer Price Index (CPI) rose 3.8% in the 12 months to December 2025, up from 3.4% in the year to November, according to the Australian Bureau of Statistics. The trimmed mean also rose to 3.3% in the 12 months to December, from 3.2% in the year to November. For the December quarter, Inflation published at 3.6% – the highest level in six quarters; with the RBA’s Inflation target range remaining at 2% –3%; whilst at the same time, Unemployment edged down month on month from 4.3% to 4.2%.

In January, the RBA Deputy Governor warned that the chances of near-term easing remain “very low”. “Inflation above 3%, let’s be clear, is too high,” Andrew Hauser said. “I think we all remember the pain and the difficulty, many of us are still working that through, of that persistent high period of Inflation over the last few years. It’s our job to ensure that doesn't happen again.”

The hike was widely anticipated by the major banks, with all four forecasting a 0.25 basis point move; whilst at P & J Financial Solutions, we are of the view that the RBA wanted to be on the front foot and commenced Interest Rate hikes straight away, to ensure things don't get out of hand. We have noticed some caution in the markets in prior weeks and now the shift will be toward looking at whether this is the beginning of a new upward trend in Interest Rates, or if this will be a one-and-done hike for this point in time. Over the coming weeks, we hope that we will gain further clarity around what the future is going to look like.

One valid argument that abounds at present is that rising Interest Rates will do little to slow Australia’s property market, as persistent Housing shortages and strong Investor demand will keep prices elevated. Interest Rates alone are not just going to do anything, because in the end, they are not building enough homes for the people that want to purchase. So ultimately that comes down to supply and demand. If the supply is not there, the demand is going to increase regardless of what the economics are outside of that. This is always going to be one of the factors that keeps heat in the market, and you cannot change it overnight.

Supply constraints will continue to underpin Housing prices, so we are not talking about a sharp correction. But higher borrowing costs do slow things down. We expect price growth to moderate through 2026. For borrowers, this means less borrowing power and a more challenging lending environment; which tends to cool buyer urgency, encourage more cautious bidding, and bring a more measured feel to auctions and private treaty negotiations.
The higher Interest Rate environment also makes it tougher for First Home Buyers looking to take advantage of the Australian Government 5% Deposit Scheme, as higher Interest Rates can reduce borrowing capacity for those trying to enter the market. The RBA Board has made it clear that Inflation is likely to remain above target for some time, driven by substantial growth in private demand, including both household spending and investment, and escalating house prices.

As the year progresses the Economic and Financial landscape holds a degree of considerable uncertainty and volatility and as such the need for experienced guidance and knowledgeable advice remain critical for all Borrowers (both personal and / or business) when reviewing and considering their financing options be they for new, increased, or additional finance; or simply a “health check” on their current Lending facilities. Accordingly, please do not wait or hesitate to reach out to Paul or Jason at P & J Financial Solutions for such advice, guidance, and assistance in a professional and friendly manner.

31/12/2025

As 2026 is almost upon us; the Team at P & J Financial Solutions would like to wish all of our Clients, Business Colleagues, Family, and Friends all the very best for the year ahead.

May it be successful, prosperous, healthy, and rewarding for you all and filled all the goals that you are striving for.

Happy New Year. 🎉 🥳 🎊