More than half, 53%, of the 100 mortgage brokers surveyed believe that there will be no interest rate cuts for the rest of the year, while the rest think that interest rates will decrease before the end of 2016.
Rates were left on hold by the Reserve Bank in September, but brokers gave several reasons behind a potential rate cut before Christmas.
“The economy is struggling. Unemployment is too high and the government’s slim working majority will harm business confidence,” one broker said.
Another broker reasoned, “Subdued economic conditions will lead to an environment of reduced rates.”
This was supported by another broker, who said, “The economy is stalling – and compared to the rest of the world – our cash rate is still relatively high.”
As for when the rate cut would happen, one broker speculated, “Rates are likely to fall in November – especially if the earlier rate cut does not have the desired impact on the economy.”
Collections: Mortgage News