Interest Rates fall as bond yields collapse

Sydney Morning Herald 27~28 July 2019
What are we going to do with our surplus cashflow ?

 

Doesn't bode well for the economy.

Why would people fix when the rate is looking to go down, especially with this doom and gloom article.

 

I find this to be excellent news. Great time to demolish PPOR debt at such low rates that are even going lower.

 

It all depends on the rate and term. I can currently fix at 0.41% lower than the current variable rate for 2 years (3.62% for 2yrs inv P&I). So unless there is 3 more rate cuts in the next 12 months I will be better off fixing (considering the RBA rate already 1%, is it likely to go to 0.25%?).

Assume only 2 rate cuts (0.5%) in the next 6 mths, the banks probably won't pass these on in full (maybe 0.4% passed on) so would be the same as the fixed rate but I would of saved the 0.41% interest between now and the first rate cut and ~0.2% between the first cut and the 2 rate cut.

 

I mean it's in the Australian, they're not really a doom and gloom rag. If anything they're usually bullish on all things economic. I agree it could be a bad sign. Pensioners have often seen incomes fall with rate cuts.