Home owners were again this month relieved to find the Reserve Bank left rates on hold. They haven't been moved once since November 2010. The obvious question is in which direction will they move in the future?
As usual we have commentators and industry players with opposing predictions. Westpac announced last month they expect 4 rate cuts over the next year. However most industry players were expecting a rate rise this month and still expect one in the short term. Commsec economist, Savanth Sebastian was quoted a few days ago in The Age newspaper predicting a rate rise by November.
A couple points the experts think could lead to a rise are:
Couple Points the experts think could lead to a fall in rates are:
We will all have to wait for next month to see the next move.