Tuesday 5th September 2017Don’t Get Trigger Happy with Rates
The Reserve Bank of Australia (RBA) will need to continue to tread cautiously with its future cash rate deliberations and not be rushed into a “trigger happy” rate hike, mortgage broker network.
1300 HomeLoan Managing Director John Kolenda said the RBA has kept a cool head by keeping official rates at the all-time low of 1.5 per cent since its last movement in August 2016.
Mr Kolenda said it would be unwise for the RBA to jump the gun on interest rates and act on its ongoing concerns about the bullish east coast housing markets.
“There’s no need for the RBA to have its hands anywhere near the interest rate trigger,” Mr Kolenda said.
“There are few interest rate hawks predicting a rate rise early next year but the RBA just needs to relax and maintain its highly accommodative monetary policy stance.
“The economy is moving steadily but consumers are continuing to struggle with sluggish wages growth and cost of living pressures.
“Hopefully, official rates will stay near the current historical lows for some time with any future upward rate movements likely to be small and implemented over a protracted period to avoid causing unnecessary shockwaves.”
Mr Kolenda stressed home loan customers should be more concerned about what rate their lender is offering and striving to get the best deal possible.
“It’s more important than ever for consumers to be on top of their home loan and the interest rate they are paying and not be complacent about their financial situation,” he said.