NEWSFLASH: Mortgage rates set to fall by at least 0.50%!!! Most economists are now predicting rates to fall after the financial market prices for our 3 year Government Bond has fallen once again to 2% in the last month indicating the official cash rate of 2.50% is too high. With the rest of the world except America either cutting their official interest rates (if they have any rate left to cut) or stimulating by buying the same bonds that they issue, thus flooding the market with cheap/easy money, Australia will soon follow suit. If you live in Sydney you may ask why, given the expensive prices of property, but as I have been saying recently, its not called the Reserve Bank of Sydney and the rest of Australia is not going nearly as well. Also inflation is set to turn in a negative quarterly result next week following the massive fall in the price of Oil and NZs -0.20% quarterly inflation fall this week. This should give the AUD the chance to continue its move towards a more competitive level in the 0.7xxxs but dont be surprised if, over the next year you see it start with a 0.6xxx.
Posted on: Thu, 22 Jan 2015 19:20:31 +0000
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