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What will happen to Interest Rates

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| 19 Aug 2011, 05:21 AM Agree 0
Interesting to hear the different expert commentators about on whether interest rates will go down, up or remain the same and it's easy to get confused as to the most likely outcome.

My viewpoint on what the <a href="">RBA should do with interest rates </a>is that a .25% reduction in rates next month as a way to ease financial pressures on households that started to really bite in November last year when rates went up by the RBA and the big 4 banks.

I hear that many households are earning a decent income but rather spend they are saving for a rainy day, however industries like retail are really suffering and a rate decrease just before majority of us gear up for the back end of the year could give this industry a real kick into the xmas period.

What are people gut feeling into where rates will go for the rest of the year ?
  • patchy | 19 Aug 2011, 05:32 AM Agree 0
    Think it really depends on what happens with the global economy. If the volatility worsens, i think we could be looking at a few rate cuts; if it stays about the same, maybe one; if it eases, none. Rises are pretty much off the cards for now though. Some kind of cut before Xmas to kickstart the retail sector would make sense though.

    (now watch as the cash rate flies up to 5.5%)

    Nice to see there's another cyclist around these parts, too. Enjoy the B2B? everyone I've spoken to said it was crazy hard.

  • Smartline Chiswick | 29 Aug 2011, 12:03 AM Agree 0
    We're in an interesting time at the moment as even the economists working at the big banks can't agree on what is happening with interest rates. Some are still calling for rises whilst others are predicting big drops.

    I'm of the personal view that they are likely to go nowhere fast but we'll likely see a 0.25% drop before the end of the year with another to follow early-mid next year. I'm about to lock in part of my personal mortgage for 1 year as I feel there are some bargain short fixed rates at there at the moment (5.99% for 1 year with one lender and I just don't see variable rates falling that much during that period).
  • Herman | 16 Mar 2012, 06:18 AM Agree 0
    Yes you heard 100 percent right that many households are earning a decent income and they are saving that money for rainy days.
  • amyshermangun | 02 Jul 2012, 03:38 AM Agree 0
    The interest rates on variable rate mortgages are often lower than the fixed interest rate offered at the time you sign the contract. However, whether you are better off with a variable interest rate mortgage compared to a fixed interest rate mortgage depends on the movement of market interest rates

    Amy S. Shermangun
  • adrianjill | 11 Sep 2012, 06:57 PM Agree 0
    Most of the time people are in an interesting time even the economists working at the big banks and they can't agree on what is happening with interest rates.

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