What do you think the interest rate decision will be in April 2015? The interest rate markets are pricing in a 68% chance of a fall – up from 64% last month. Almost all economists believe there will be another drop within the next 3 months.
Currently the official cash rate is 2.25% – with inflation at 1.7% (source www.rba.gov.au) it will be interesting to see what happens next month, the RBA is dealing with conflicting market segments and objectives with the property market in Melbourne and Sydney doing very well (too well for the RBAs comfort) while at the same time the wider economy is flat and the un winding of the “mining boom” is now coming to an end, taking the pressure out of the QLD and WA economies.
What do you think will happen? My call is that they will leave rates unchanged – lets see how it goes. If you would like help or advice you can contact our lending specialists below.
Author: Alan Maddick 31/03/2015
Update: – the RBA did leave rates on hold at this meeting. -for more information on the reasons why please see: RBA Interest rate decision May 2015
