How does a 1% interest rate cut sound to you? According to an economist from one of the country’s Big Four banks, the RBA could spring four more interest rate cuts on the Aussie public this year. But will the lenders follow suit?
Westpac chief economist Bill Evans has told Fairfax that the Reserve Bank could drop the official cash rate as low as 2.75% by the end of 2012 – representing four 0.25% rate cuts, including the one announced this week by the RBA. Evans said economic conditions are fragile, necessitating deep rate cuts.
"You can't ignore what's going on in the market. There's a fair degree of disquiet. Monetary policy is too tight given the shock to confidence and fragility of the economy. Retail has lost its momentum, house prices have edged off, capital spending is quite soft excluding mining," Evans said.
As well as this month's recently announced 0.25% cut, Evans has forecast successive 0.25% cuts in July and August, followed by one more before the end of 2012.
Are you considering your finance options? Visit the mortgage and finance section of our property investment forum to discuss loans with the property investment community.
Homeowners urged to pump tax refunds into mortgage
Sticking to a budget, without the tears
How to find a bargain investment property
Do you have more than $120k in your super fund? You could use your super to buy property - Find out how
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out