Save thousands on your home loan
Compare 25+ lenders and hundreds of loans in an instant
I want:
Westpac Macquarie citibank commonwealth bank anz bankwest
finni mortgages logo
google reviews
4.9
star star star star star
Rating based on 147 reviews

×

Rates may remain low to early 2015

A survey of leading economic experts showed more than half are predicting rates will stay low until next year.

cambridge park nsw 05

Ten out of 16 experts surveyed by Finder.com said the public’s reaction to the severe federal Budget cuts would prompt the Bank to delay a change in the cash rate.

Nine of the economists and experts predicted rates would not rise until 2015, while five respondents thought a hike might come later this year.

John Symond from Aussie said the current economic recovery was still tenuous.

“We don't think there will be a change to rates, as the economy continues to send out mixed signals,” he said.

According to Paul Williams from Heritage Bank, the RBA’s decisions would be shaped by certain key economic factors over coming months.

“The RBA will be keeping an eye on the trends in unemployment, developments in key offshore economies, inflation levels and rising tensions in south east Asia and Europe,” he said.

Nick Hutley from Urbis was more optimistic that the economy was turning a corner and rates would probably climb in the latter part of 2014.

“Consumers opened their wallets a little wider in the first few months of the year and the housing cycle is in full swing,” he said.

The survey also spoke to economists from AMP, ANZ, Bank of Sydney, CBA, Commsec, HSBC, ING DIRECT, ME Bank, Moody’s Analytics, Property Observer, RAMS, St George Bank and UBS.

You need to be a member to post comments. Become a member for free today!


Related articles