9 Jul 2010
How many homeowners breathed a sigh of relief when the RBA revealed that interest rates weren’t going up this month?
This is the second month in a row that interest rates have remained at the current rate of 4.5 percent and hopefully they stay just where they are.
It’s funny how quickly people’s predictions of interest rates change. After last month’s interest rate announcement many believed we had a few interest rate rises ahead of us, with the belief that Australia was under threat of a housing bubble.
Now only one month later I’m hearing the exact opposite predictions. Some are saying that interest rates could even come down, and that the RBA’s decision to increase interest rates in May was a mistake.
The RBA’s decision to raise interest rates in May was to try and prevent and occurrence of a housing bubble in Australia, but with the property market now slowing down, and fears that we could be impacted by the European Debt Crisis there is little reason to suspect a bubble.
Let’s hope that this means that we won’t be expecting interest rate rises anytime soon, but as we have seen just this past month, it is hard to know what is going to happen next.