Responses
The RBA has flagged that they are comfortable to go lower if needed.
From the Feb RBA meeting - “Continued low inflation may provide scope for easier policy, should that be appropriate to lend support to demand.”
If this will be passed on by lenders is another question altogether given that most lenders have increased rates independent of any moves by the RBA in recent months.
Hi Graeme,
According to a survey of the big 4 and other leading financial institutions, they predict that RBA will keep rates on hold or decrease 0.25% by the end of 2016. Most are predicting the RBA rates to remain on hold.
In this current environment RBA movements aren’t always a signal of what will happen with rates. Last year we saw the big four and numerous other lenders lift rates without any RBA increases, citing rising funding costs and onerous regulatory changes. This year we have seen two of the big four increase rates on some of their commercial products for the same reason.
That was my very long winded way of saying that bank rates are extremely difficult to pick in this current environment, and have been for quite a while.
If you are thinking about reviewing your home loan, it’s a great time to be a new to bank customer.
A lot of lenders are charging their existing customers higher rates due to “rising cost of funds” whilst at the same time enticing new clients with varying offers including discounted rates, frequent flyer points and cash rebates for new customers.
If you’re after the security of predictable mortgage repayments it may also be a good time to look at fixing some of your home loan.
I hope that helps!
Gerry Ardesi – 1800 LOANCO
Anything can happen in our market
Interest rates globally indicate little movement
The RBA has a few guidelines it adheres to
I hope this questions is just for curiosity sake.....as you should never delay an investment opportunity based on concerns regarding the cost of funding .
Can you provide me more information about your concerns .
However if just a generic question. ..experience tells me NO rise , however history commands me to have a very open mind
The governments in major countries are handing out a lot of money to get their economies going. The world growth figure has been modified. Therefore, it looks unlikely that the interest rates will go up soon. Australia is one of the lucky countries that escaped GFC but the growth has slowed down here as well. With the mining industry in turmoil and housing facing a downturn, the cost of raising interest rates might be too high.