Home News Odds shorten for June rate hike

Odds shorten for June rate hike

Font size :
Nila Sweeney

St.George’s Monthly Economic Outlook for May indicated that the RBA is concerned a pick-up in mining investment could exert pressure on wages and other costs.

 

“With underlying inflation now expected to exceed its 2-3% target by 2013, the RBA looks poised to raise interest rates soon,” it said.

 

While St.George is standing by its long-held forecast for a rate hike in August, the bank says there is a possibility policymakers could pull the trigger sooner.

 

“Recent RBA rhetoric has been more hawkish than previously with stronger references to inflationary pressures building,” it noted. “Importantly, the RBA expects underlying inflation to be towards the top of its 2-3% target by the end of this year, and to exceed 3% by 2013. It means there is little room for error on the inflation front for policy makers.”

 

The RBA is also considering cautiousness in household spending and a softening in the housing market. As well, it is taking into account the effects of the natural disasters earlier this year and the temporary disruptions to economic activity.

 

The RBA’s Statement on Monetary Policy has led several analysts to shift their forecasts – a survey conducted in mid-May found six out of 17 are calling for a June rate hike. Interbank cash rate futures are tipping a 17% chance of a June rate hike.

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

House prices return to more affordable levels in mining towns House prices return to more affordable levels in mining towns

While the end of the mining boom has had a negative impact on property prices, homes in the region have become more affordable Read more

Borrowers should anticipate a possible rate hike Borrowers should anticipate a possible rate hike Some experts advise borrowers to look for a fixed loan that allows extra repayments so that they can whittle down the balance sooner ... Read more

Why choosing the right mortgage is hard for first-home buyers Why choosing the right mortgage is hard for first-home buyers Many feel overwhelmed by the sheer range of products and interest rates on offer, a new survey reveals ... Read more

Mortgage applications drop in second quarter Mortgage applications drop in second quarter This marks the “beginning” of a downward trend, says Equifax executive ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Jul 27, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • 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