The Biking Broker Newsletter - 22nd July 2011

What’s happening with rates?

The RBA has left the cash rate at 4.75% since its meeting on 4 November 2010, producing consumer optimisim on rates, a new poll from Loan Market has indicated.  In the poll reported on by Broker News “40% of respondents believe the cash rate will stay on hold for the remainder of the year.  Some consumers are still bracing for interest rate pain, with 24% indicating they believe the RBA will raise rates once before year’s end, and 16% tipping two rate hikes”.  Indications from professional economists is equally confusing, with Bill Evans from Westpac tipping a 1% reduction in rates by the end of 2012 against the views of his colleagues from other major banks, mainly tipping a quarter of a percent rise later this year.

The RBA has toned down its tightening rhetoric and this has been reflected in the market with many lenders reducing their 2 and 3 year fixed rates.  2 year rates under 7% are common and one major lender has a 3 year rate of 6.99% on offer for loans over $250,000.

If you’re interested in securing a consistent repayment, finding out about rates on offer and how to access these, give me a call on 0431 524 643.