Anyone think that the August RBA rate cut will or wont happen and are you holding off from buying today in order to take advantage of the 0.25% cut being proposed? August rate cut still likely: Westpac's Bill Evans How much do you think this will drop 5 year fixed rates? The banks are unlikely to cut a full 0.25% for fixed rates but wondering if I hold hold off on the next IP for another 8 weeks.
I think they will cut it. But the banks won't pass it on. That's why the banks were so quick to pass this one.
Plenty of data to come out between now and than that will impact predictions and likelihood. Also there may be further regulator induced rate rises later this year too - partly offsetting any changes to RBA cash rate.
Hi Redom What are your thoughts? you probably have a better idea than most. One thing I do know is if the interest rate drops the Au$ will fall, currently at 75 which is a worry for RBA, this will be one consideration with regards to dropping the IR. MTR
I'd only be guesstimating @MTR - with current data i'd agree there's likely to be one more cut later this year. I don't think they'll be cutting again without much more additional data though. Its a mixed bag at the moment - decent growth data, strong employment numbers but very low inflation figures. If there's some positive news on inflation that adjusts their expectations, i'd imagine they'd hold still at this rate for the rest of the year. APRA changes do give them the comfort of cutting again knowing that it won't have too much of a negative consequence on financial stability. For homeowners and investors, I wouldn't be surprised if there is an out of cycle rate rise by lenders too - justified by increased capital requirements reducing their ROI, and passing that rate increase onto consumers. A cost of additional safety to the financial system.
I agree, I don't think we will see an IR drop. However, I also think the data is lagging behind, what we are seeing today is not the full/real picture.
