All Topics / Finance / interest rates to fall to 1% ?

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  • Profile photo of karen.karen.
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    @karen.
    Join Date: 2009
    Post Count: 196

    i was just chatting to a friend and she said that interest rates are tipped to fall down to around 1% in Australia.  I found that hard to believe.  Is that what the word on the street is?

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
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    Now certainly is not the word on the street or even the guidance on the RBA website.

    I think your friend is way off the mark and regretfully has little understanding on financial markets.

    Richard Taylor | Australia's leading private lender

    Profile photo of PosEnterprisesPosEnterprises
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    @posenterprises
    Join Date: 2006
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    We all wish 1%! :)

    Profile photo of karen.karen.
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    @karen.
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    thats what i was thinking.  and i said to her that i would be extremely surprised if they went anywhere near that – and they were adamant that she had read it everywhere.  so i dropped the subject. 

    Profile photo of hleunghleung
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    @hleung
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    Rates may go down to 2% but not likely to 1% unless our economy really "tanks".  Even if rates did fall to 1% I don't think that mortgage rates will go down much more from our present levels.  If interest rates drop by another 1% then our mortgage rates may drop another .5% as the banks keep complaining about their high funding costs.

    Profile photo of oneiriceroneiricer
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    @oneiricer
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    2% would be my wet dream come true. rates are likely to drop a max of 50 basis points only.

    i think the RBA will hold off for the next 2 round of meetings.

    Profile photo of karen.karen.
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    @karen.
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    hleung wrote:
    Rates may go down to 2% but not likely to 1% unless our economy really "tanks".  Even if rates did fall to 1% I don't think that mortgage rates will go down much more from our present levels.  If interest rates drop by another 1% then our mortgage rates may drop another .5% as the banks keep complaining about their high funding costs.

    thanks for explaining it so well  :)  i hadnt thought of that

    Profile photo of god_of_moneygod_of_money
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    @god_of_money
    Join Date: 2008
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    Might be going up next year 2010…

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
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    Certainly Bond Rates have started to move back up the curve hence fixed rates have started to rise.

    Richard Taylor | Australia's leading private lender

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