The 1st Interest Rate Thread

According to market pricing 28/8/15, there's a 100% chance of a rate cut in February 2016.

http://www.asx.com.au/data/trt/ib_expectation_curve_graph.pdf

When that happens I would expect the banks will pass it on to owner occupiers only.

 

Yeah, given that we are disproportionately largesse on mining exports, coupled with lower dollar...you bet it'll decrease.

 

The 2-year swap yield has broken below its multi month range of 2%-2.2% and targets 1.85%.

If trend continues, owner occupiers might be offered better fixed rate deals in coming weeks/months.

 

Phew.

The US Federal Reserve delayed raising rates, citing global risks.

“Recent global economic and financial developments may restrain economic activity somewhat and are likely to put further downward pressure on inflation in the near term,” the Fed said in a statement.

http://www.bloomberg.com/news/artic...n-to-delay-fed-liftoff-points-to-global-risks

They're looking after the world and not just America anymore. If the Feds delay any further well into next year, our RBA hopefully will cut further.