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?
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
We all wish 1%!
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.
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.
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.
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
Might be going up next year 2010…
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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