About Michael YardneyNow that the elction has come and gone I can see 2 reasons that may cause interst rates to rise.
1. Our local banks have been hinting that they want to increase rates due to the increased cost of obtaining their funds overses, but were reluctant to do so during the election campaign.
2. Some commentators are predicting the outcome of a weakened mandate by either party in government will mean the likelihood of higher interest rates. The Australian Financial Review reports that “minority governments make weak economic managers” and it is possible the RBA may have to take hard decisions to curb demand that a government may shirk.
We’ll have to wait and see how things pan out and how this effects our real estate markets and property investors
