In support of my previous blog, there is external mutterings for a further rate cut.
In an article in last week's Sydney Morning Herald, Economics Editor Peter Martin, explains that the ratings agency, Standard and Poor's, is sending a message to the Australian Government to adjust is fiscal policy to support growth in the economy.
One of the suggestions, is for the government to cut interest rates further sooner rather than later from 1.75% to 1.5%. This with other measures such decreasing tax concessions, halving capital gains tax but dropping negative gearing.
To maintain its AAA credit rating, the government will need to make some tough decisions. But the good news for existing mortgage holders and those in the market for a home, s that interest rates are likely to fall again.