The Biking Broker Newsletter - 4th August 2009

Reserve Bank Leaves Rates on Hold Again-but Fixed Rates Going UP!

The RBA today has left the cash rate at 3% for the 4th month in a row after lowering the rate by 0.25% in April this year. Glenn Stevens, Governor of The Reserve Bank, cited a general stabilising of world the economy and a strengthening Chinese economy, stronger domestic consumer confidence and increased domestic housing activity as some of the factors in making the decision.
A full statement on monetary policy leading to this decision is available here>>

Meantime, domestic lenders have been progressively raising fixed rates since April. With the latest rises effective today,by Westpac, in the market you can now expect to pay on average 5.36% for 1 year fixed rates, 6.52% for 3 year rates and 7.21% for 5 year rates. This compares to 4.68%, 5.59% and 6.23% respectively at the beginning of June this year, a rise of almost 1% in longer term rates!

If you’d like to talk to me about whether fixing may be of benefit to you, call or email me.