Just like to get an idea of what members think interest rates will do over the next few years please feel free to and a comment to explain your decision.
I'm hoping they increase, because that means our economy is growing stronger... in the near future I can only see increases being pretty small.
I'm also hoping that our economy improves and a flow on effect is rates increase. Cheap mortgages might feel good, but a lot of our economic and housing problems are a direct result of low rates.
I think flat for 2017, or 50/50 slight increase or decrease depending on the economy for forth quarter. From 2018 I think they'll be rising quite moderately. Trading Economics predicts we'll be at 3.5% by 2020 Australia Interest Rate Forecast 2016-2020
I'm going to go against the trend and say that I think they'll decrease, albeit not by much. But I think that the Reserve bank will decide that to help increase affordability for Sydney that they need to drop interest rates (cause you know, only Sydney really matters). They'll do it, and I think it'll stay there for a while and then come back to where it is now. Can't see it increasing too much in the next couple of years with so many people so highly leveraged.
Generational theory says we are most of the way through the woods hopefully (being winter) which means recovery and higher rates are just around the corner.
Expecting an increase to cool the market and bring growth down a bit. +0.5-1% over a year would be nice. Sure some loan holders might buckle under this pressure but somethings got to give.
They are definitely going to drop them....let's drop rates for existing property owners and fuel further high prices...
The US will raise this week. Banks will hike rates at some point in near future. Does not matter what RBA does anymore. If the trend now is US rate increases, which seems clearly is the reality, RBA won't need to cut and may also at some point have to raise as well.
A general correlation does not mean that this will necessarily be the case. Loss of The AAA rating would be one example of that.
There is only one direction for rates...up up and away! Like most things in this world, the rest of the world follows the US with rates in general. Hold onto your seats, it's gonna get hot in here.....there will be blood in the streets.
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