Following the most recent Reserve Bank meeting earlier this month, it is being widely interpreted that the official cash rate is likely to stay on hold until late 2019 (Bill Evans, Westpac Chief Economist. There are now even interpretations of rates on hold until late 2020. ClickHere
The factors in play: the exuberance of regulators (APRA / ASIC) have done all of the Reserve Bank’s heavy lifting. The Royal Commission is causing banks to pull back even further. The Treasurer now mentions an “unintended” credit tightening.
Is this bad news? It all depends on perspective. The Reserve Bank tends to work “counter cycle”.
What we have now though is both lenders and consumers pulling back so the Reserve Bank has signaled that it will keep rates on hold as far as the eye can see.
What does it mean for you?
On investment – this is the area hardest hit at the moment and I have been given the most spectacular offer in the market to give my own clients. It’s so good I have been told I cannot mention the interest rate publicly – please contact me for information.
As always if you’d like to know more or would like advice tailored to your own personal circumstances, just Ask Alan – Your online mortgage broker.
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