Where next for interest rates?

One minute read. No interest rate change again this week. The smarties tell me that a neutral interest rate setting is when the yield curve is at 0.5%. Above this magic marker, official rates are likely to rise and below, the cash rate is likely to remain steady or may even fall. Our chart this…

RBA Survey | Banks need to do more to win trust of consumers

Following a recent series of scandals, Australian economists and industry experts are calling for banks to improve their public image to win back consumers, while a cash rate rise is not as close as initially expected, according to new research by finder.com.au. The economists and experts shared their views in the latest finder.com.au RBA Survey,…

In today’s podcast I discuss a very important topic for property investors – the future of interest rates. Do you think they are going to stay the same, fall or rise?    Would you be surprised if they went up eight times in the next two years? One expert believes that could be the case….

RBA's forecasts imply 2 rate hikes by Mid-2019

Are you ready for an interest rate rise? Well… you may should be. After holding rates steady for many months the ANZ Bank believes that the RBA’s forecasts imply 2 rate hikes by mid 2019. The question of what the RBA’s forecasts imply about the cash rate has been a focus of recent attention. If we…

RBA survey | Rent and mortgage stress tipped to rise

Despite the state and territory governments introducing new policies to improve housing affordability, the majority of experts and economists believe rent and mortgage stress is increasing in capital cities, according to finder.com.au. finder.com.au’s RBA cash rate survey, the largest of its kind in Australia, shows all 34 experts and economists (100%) are expecting the central…

Lower interest rates reducing mortgage stress

Despite some concern regarding the future of the property market – mortgage holders appear to be breathing a little easier.  New results from Roy Morgan’s mortgage stress data show that in the three months to April 2017, 16.8% or 666,000 mortgage holders can be considered to be ‘at risk’ or facing some degree of stress over their repayments. …

APRA want you to go on a debt diet

APRA wants you to go on a debt diet and it seems to be getting its way… National Australia Bank has followed Westpac and ANZ, hiking rates for mortgage holders making interest-only repayments, while reducing rates for owner-occupier customers paying off their loan.  Investors and owner occupiers who opt for interest-only will have to stump up an extra $102…

Banks make millions in delaying interest rate cuts

When the cash rate increases, lending rates shoot up like rockets, but when the opposite occurs they go down like feathers, writes… Abbas Valadkhani, Swinburne University of Technology When Australia’s central bank moves interest rates as part of its monetary policy, it’s not just politicians who stand to lose if banks don’t follow suit. Retail…

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