Cheap money set to stay as RBA settles in [Infographic]

Australia’s love affair with cheap money is set to continue with no sign interest rates will move in the near future. 

The RBA meets once a month and RateCity.com.au’s RateForecaster has predicted rates will remain on hold when the RBA Board meets on Tuesday, with all 23 economic indicators pointing to the cash rate remaining unchanged. Reserve Bank Of Australia

Of course here’s no surprise about this, but you’re likely to find the infographic below instructive

RateCity money editor Sally Tindall said the RBA would need to see considerable increases in inflation and wages before they could justify a rate hike.

“The future direction for interest rates is up, but nothing can happen until the economy gives the RBA the green light to hike,” she said.

“The International Monetary Fund has predicted mortgage rates will increase to 7.1 per cent by 2022, but the reality is, Australian households are carrying too much debt to withstand a succession of rate hikes.

Rate City Infographic

Source: www.ratecity.com.au

RateCity data shows that currently the average variable rate is 4.65 per cent across all lending categories.

“The RBA will have enough trouble finding a reason to hike rates even once this year,”  said Sally Tindall.

“That said, the end of record low rates will eventually come. Borrowers need to take advantage of this period in our economic history, by getting ahead on their mortgage and creating a buffer for when rates eventually rise.

“Don’t be complacent. There is plenty of competition in the market with rates as low as 3.44 per cent,” she said.

Ads BANNER

icon-podcast-large

Subscribe & don’t miss a single episode of michael yardney’s podcast

Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.

Need help listening to michael yardney’s podcast from your phone or tablet?

We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.

icon-email-large

Prefer to subscribe via email?

Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.


Avatar for Property Update

About

Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and his opinions are regularly featured in the media. Visit Metropole.com.au


'Cheap money set to stay as RBA settles in [Infographic]' have no comments

Be the first to comment this post!

Would you like to share your thoughts?

Your email address will not be published.
CAPTCHA Image

*


facebook
twitter
google
0
linkedin
0
email

Michael's Daily Insights

Join Michael Yardney's inner circle of daily subscribers.

NOTE: this daily service is a different subscription to our weekly newsletter so...

REGISTER NOW

Subscribe!