Interest rate rises coming?

The Governor of the Reserve Bank, Glenn Stevens, has indicated that there is a high probability of a further interest rate rise on Melbourne Cup Day.

The expectation is that we will have a further three interest rates in the following months, before a period of levelling expected to last up to nine months. This would bring the official interest rate to 4.25%.

Historically these are still low interest rates, but as the economy continues to improve it would be reasonable to expect that rates will continue to rise.

Local mortgage broker, Don Hogden, says that “there is a large disparity between fixed and variable interest rates at the moment, whilst usually I would suggest fixing until this gap is less variable appears to be better option”.

His observation in his 33 years in the industry has been that rapidly rising rates become a problem where people have not budgeted for them. He says “cashflow becomes tighter and people may not realise the impact of this until they are behind in their loans”.

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Related posts:

1. 0.25% increase in interest rates
2. National Fuelwatch coming to Lismore, Ballina
3. Strong interest in liquor law reform forums
4. Richmond Valley Council seeks rate structure input
5. Far North Coaster surf report