Analysts anticipate rate cuts to 1.5%

Font size :
There is increasing speculation of a rate drop this year to 1.5% among industry experts.
 
Early this year, the RBA historically dropped the cash rate to 2.25%. Today, they left the official interest rate unchanged.
 
Among the reasons that fuel speculation of another all-time low interest rate drop are the softening of the Chinese economy, the mining sector suffering bigger challenges than expected, and the high Aussie dollar.
 
But AMP chief economist Shane Oliver said he wouldn’t be surprised to see the rate dropping to 1.5% or 1.75%. He added that he foresees two more rate cuts left.
 
“It wouldn’t surprise me if we saw the cash rate at 1.5% or 1.75%,’’ he said. “Those people who already have a mortgage are choosing to pay it off as quickly as they can.”
 
“I would hope and pray it doesn’t go any further than that because that would signal that our economy is really heading the wrong way. We want interest rates to start dribbling up because that’s a signal that the economy is getting back on its feet and we are heading in the right direction.”
 

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Wednesday, Sep 20, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords