Next round of rate rises? BOQ raises rates.

Discussion in 'Loans & Mortgage Brokers' started by Hockey Monkey, 10th Jan, 2019.

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  1. Hockey Monkey

    Hockey Monkey Well-Known Member

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    Hockey Monkey, 10th Jan, 2019
    #1
  2. ndpjai

    ndpjai Well-Known Member

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    Get ready for all the others to follow.
     
    ndpjai, 10th Jan, 2019
    #2
  3. JamieS

    JamieS Member

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    It's not suprising. Credit spreads are widening and BBSW seems to have structurally shifted up by 0.25% in the past year, which together has led to funds costing 0.60% more than this time last year.
     
    JamieS, 10th Jan, 2019
    #3
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    and the AUD exchange rate isnt getting better

    Next RBA rate move if there is one in the next 18 mths looks south

    ta

    rolf
     
    Rolf Latham, 10th Jan, 2019
    #4
  5. paulF

    paulF Well-Known Member

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    paulF, 11th Jan, 2019
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  6. marmot

    marmot Well-Known Member

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    If the RBA was to cut rates ,I think it would send a pretty strong message that many australian households are in trouble.
    At best bank rates would stay at current levels , but not rise , so it seams a rather pointless exercise.
    I dont think to many investors would pile into property if they knew that at some point interest rates will go up and cause more pain.
    Which would indicate there will be more people selling rather than buying.
    Then you have a small group maybe 5-10% that may be forced to sell over the next 2 years when they are pushed from IO to P&I.
    As more people did into their savings it also means their is more pressure on banks to fight for the smaller pool of depositor funds.
    Or fund it from overseas.
    Its just a vicious circle that leads to banks pushing up their rates ,especially the smaller ones.
     
    marmot, 11th Jan, 2019
    #6
  7. Hockey Monkey

    Hockey Monkey Well-Known Member

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    Hockey Monkey, 11th Jan, 2019
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    paulF and TSK like this.
  8. TSK

    TSK Well-Known Member

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    Yeap.
     
    TSK, 11th Jan, 2019
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  9. AlexV_Sydney

    AlexV_Sydney Well-Known Member

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    National Australia Bank's digital bank UBank is raising rates on a range of fixed-interest products by 20 basis points, the fourth lender to move in a week.

    ...

    UBank, NAB's consumer banking and wealth online operation, is raising rates on new one-, three- and five-year interest-only mortgages, typically increasing headline rates from 3.99 per cent to 4.19 per cent.

    NAB's UBank lifts interest rates as pressure mounts on RBA to cut
     
    Last edited: 16th Jan, 2019
    AlexV_Sydney, 16th Jan, 2019
    #9