interest rate

RBA Survey | APRA’s clampdown could spell trouble for interest-only borrowers
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With the Australian Prudential Regulation Authority (APRA) clamping down on interest-only loans, experts and economists think interest-only borrowers may have a hard time refinancing to principal and interest loans, according to finder.com.au.  All 33 experts and economists in the monthly finder.com.au RBA survey, which is the largest of its kind in Australia, are expecting the…

Will Reserve Bank cut rates – Should they?
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This week the Reserve Bank meets for the first time in 2017 to decide its opening monthly stance on official interest rates. The odds for a February rate cut remain higher than the more likely continuation of the steady-as-she-goes approach of recent months. However the case for a cut by the Bank sooner rather than…

Can Australia stop interest rates from approaching zero? Only with a big shift in policy
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While Australia faces its greatest economic challenges in a generation, we are still waiting for the greatest economic reformers in a generation to arrive, writes… Reuben Finighan, University of Melbourne Australian Treasurer Scott Morrison recently suggested the Reserve Bank of Australia (RBA) avoid cutting interest rates below the current 1.5%.  The Turnbull government’s “fiscal consolidation”,…

RBA Survey: Cash rate to halt, while loan sizes set to soar this mortgage season
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While a rate change is highly unlikely at tomorrow’s Reserve Bank board meeting (Tuesday 6 September, 2016), home loan sizes are expected to soar this mortgage season, with borrowers looking to take advantage of a historically low-interest rate market, according to finder.com.au, Australia’s most visited comparison website.  All 38 economists and experts surveyed last week…

Global interest rates lowest in 5,000 years
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Yes, you read that headline right and, no, it’s not a typo!  Global interest rates are now, rather stupendously, at their lowest level in 5,000 years. Bank of America Merrill Lynch came to this conclusion as it compiled some very impressive research for the latest edition of its Longest Pictures report, which included more than…

Brace for record low rates
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Credit growth slows  The Reserve Bank (RBA) has an inflation target of 2 to 3 per cent, and the latest figures this week showed that inflation is running well below that level, and the softest inflation result in 17 years. On Friday the RBA released its Financial Aggregates figures for the month of June which…

What interest rate cuts do to the Australian dollar
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The Reserve Bank of Australia cut the official cash rate by 25 basis points to 1.75% in May, making this the first cash rate cut since May 2015. The decision was a tough call amid lower than expected inflation, low consumer sentiment and a downward trend in house price growth. The cut had a powerful effect on…