The Reserve Bank of Australia held the cash rate unchanged at 2.0 per cent at its meeting today citing low commodity prices, a weakening dollar and a fairly stable unemployment rate at the crux of its decision.
National figures indicate borrowing for business and housing remains strong, as does the housing market, and the team at Green Finance Group can certainly attest to this having secured more than double the dollar volume of finance in 2014/15 than that of the previous financial year (also a record year).
“But what about the Greeks?” I hear you say. It’s certainly going to get a little crazy over there and if anything we’ll be looking at further cuts to interest rates.
Key economists predict an additional two cuts in the following 12 months but whether or not these cuts are passed on in full by the banks is still the big unknown (and unlikely).
Just how low they can go isn’t a guess I’d like to make but what I do know is that the going is good right now. Variable rates are floating around 4.50% p.a., banks want the business and there are some great fixed rate options to consider (certainly the lowest I’ve seen in my career).
Waiting for the market to bottom out doesn’t guarantee savings and you can be sure that when rates stabilise it won’t be long before they start creeping up.
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