Unravelling interest rate trends

December 01, 2014
Stephanie Cook

The rate you pay on your home or investment loan is shaped largely, but not entirely, by the official cash rate as set by the Reserve Bank of Australia (RBA).


The RBA uses the cash rate as a lever to fine tune Australia's economy, assessing not just the impact of rates on the property market, but also weighing up how rate movements will affect the Aussie dollar, demand for business investment and inflation.


These days our economy is closely tied to international markets, making it far more challenging to pinpoint how rates will move in the future.


One thing is certain, today's home loan interest rates are the lowest in decades, and that makes now an excellent time to consider upgrading your home or investing in property.



Interest rates have steadily fallen since the 1990's and home owners with long memories will recall the 1980's when rate were hovering around 17.5%. So much for the good old days!


What will the RBA announce after tomorrow's meeting!?

Posted in: Interest rates

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