The next rate rise is coming ... but maybe not from the Reserve Bank

Discussion in 'Property Market Economics' started by Simon_S, 5th Apr, 2018.

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  1. Simon_S

    Simon_S Well-Known Member

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    The next rate rise is coming ... but maybe not from the Reserve Bank

    Well that didn't take long did it.

     
    Simon_S, 5th Apr, 2018
    #1
  2. euro73

    euro73 Well-Known Member Business Member

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    euro73, 5th Apr, 2018
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  3. radson

    radson Well-Known Member

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    radson, 5th Apr, 2018
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  4. Simon Hampel

    Simon Hampel Founder Staff Member

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    umm ... and?

    We've already seen interest rates go up due to APRA rule changes.

    We also saw interest rates move out of step with the RBA during the GFC because the wholesale debt costs went up.

    It's hardly unexpected and the Bank of England doesn't set the wholesale prices for every other bank!
     
    Simon Hampel, 5th Apr, 2018
    #4
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  5. Simon_S

    Simon_S Well-Known Member

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    This is much bigger than the APRA changes.

    The moves out of step with the RBA during the GFC were minor and ultimately resolved with the Govt Wholesale Funding Guarentee.

    Matt King: This Is The Real Reason Behind The Blow Out In Libor-OIS

    This move is just getting started. And has a lot further to run.
     
    Simon_S, 5th Apr, 2018
    #5
  6. Ted Varrick

    Ted Varrick Well-Known Member

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    At least the buyers will be pleased.
     
    Ted Varrick, 9th Apr, 2018
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  7. Perthguy

    Perthguy Well-Known Member

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    Don't worry. I wll fix my loan interest rates. Then rates are guaranteed to go down, not up.
     
    Perthguy, 9th Apr, 2018
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  8. Dean Collins

    Dean Collins Well-Known Member

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    Yep....but you get to sleep easy and know what your expenses are going to be for many years to come.

    All but one of our loans are fixed and very happy to have it this way until 2020 (most are fixed even longer than this).
     
    Dean Collins, 10th Apr, 2018
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  9. Perthguy

    Perthguy Well-Known Member

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    True and there are some sharp fixed rates on offer right now :)
     
    Perthguy, 10th Apr, 2018
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