Rate Rises

The Senior Economists of Australia’s major banks appear to be divided in their predictions relating to whether the Reserve Bank will reduce interest rates when the RBA Board meets on Tuesday.

The differences in predictions relate to the latest report from the Australian Bureau of Statistics confirming significant falls in the price of fuel have reduced the quarterly CPI growth to only 0.2% resulting in a lower than expected Inflation Rate of 1.7% for the year.

As a result of the low inflation figures several of the Banks are predicting the Official Cash Rate will remain at the current level of 2.5% until late 2015 whilst their competitors are anticipating the RBA will reduce rates by 0.25% p.a. in February followed up by a 2nd rate drop in March.

The great news for borrowers is that no-one is predicting any rises in the near future to the record low interest rates we are enjoying today.

After 16 consecutive months of record low Interest Rates why do some Banks continue to charge their loyal customers higher Interest Rates ???

ANSWER: Because these customers didn’t say “NO” !!!

Just say “NO” and save your hard earned dollars.

If your Bank doesn’t listen … Contact DPF Mortgage Specialists

Reserve Bank … We’re not changing rates anytime soon

Great News for Borrowers

The RBA Governor (Glenn Stevens) reported to the House Economics Committee in Brisbane yesterday (20/8/2014) that the RBA “hadn’t thought about raising rates recently”

Mr Stevens also stated that “The board has been mindful of allowing time for measures already taken to have their effects, and of the very considerable limitations for monetary policy in fine-tuning economic outcomes over short periods. It has also seen some value, in the present circumstances, in maintaining a sense of steadiness and stability”.

The Reserve Bank has delighted borrowers by announcing that the record low interest rates will remain for the time being with the Official Cash Rate to remain at 2.50% in July 2014.

Senior Economists are not surprised by the RBA announcement as the majority continue to predict that interest rates are unlikely to change until late 2014 or early 2015.

Westpac Bank’s Chief Economist (Bill Evans) has confirmed that the Bank’s forecasting has changed and no longer anticipates any further cuts in Interest Rates by the Reserve Bank during 2014.

Mr Evans also stated that the Bank predicts Interest Rates will not rise from the current record low levels until early in 2015.

Great News for Borrowers and Home Buyers !!!

The Reserve Bank Board has announced the official cash rate will remain at the current level (2.50%) whilst they continue to observe the impact of the new Federal Government on the Australian economy.

The Reserve Bank has retained Interest Rates at their current level for September.

The RBA Board will review their decision again in October once the impact of the upcoming Federal Election has flowed onto the economy.