Australian Interest Rates Set To Rise
01/03/2005 07:37 AM - NewstalkZB
Australia's Reserve Bank Board is expected to approve a quarter of a per cent rise in official interest rates today.
A formal announcement will be made tomorrow, bringing the rate to 5.5 percent, compared with New Zealand's 6.5 percent.
The rate has been steady at 5.25 percent since December 2003.
Economist Craig James says there has been a last minute rush of people wanting to fix their mortgage rates:
However, he says many people will stick with a variable rate as the economy tends to even out over a cycle.
Mr James says any upward movement will stretch home-owners as their mortgages become more expensive, but most people have factored in to their finances that interest rates were likely to rise - they will be just be working on tighter household budgets in future.
Some economists say Australia's interest rate could rise as high as seven percent as this is forecast to be the first of several rises.
01/03/2005 07:37 AM - NewstalkZB
Australia's Reserve Bank Board is expected to approve a quarter of a per cent rise in official interest rates today.
A formal announcement will be made tomorrow, bringing the rate to 5.5 percent, compared with New Zealand's 6.5 percent.
The rate has been steady at 5.25 percent since December 2003.
Economist Craig James says there has been a last minute rush of people wanting to fix their mortgage rates:
However, he says many people will stick with a variable rate as the economy tends to even out over a cycle.
Mr James says any upward movement will stretch home-owners as their mortgages become more expensive, but most people have factored in to their finances that interest rates were likely to rise - they will be just be working on tighter household budgets in future.
Some economists say Australia's interest rate could rise as high as seven percent as this is forecast to be the first of several rises.
