Our picks for Melbourne Cup Day – Interest Rates and Horses!
With a recent increase in inflation and also increasing house prices – word on the street has been that we shouldn’t expect a rate cut when the Reserve Bank meet next week on Melbourne Cup Day to discuss whether a cut to the cash rate is necessary. However, Glenn Stevens – Governor of the Reserve Bank – has thrown some uncertainty into the mix suggesting in a speech at an investment conference in Sydney on the 29th that a “rate cut should not be ruled out.”
Despite the fact that futures markets are only factoring about a one in fourteen chance of rates moving downwards on Melbourne Cup Day – Glenn Stevens has isolated a number of factors which highlight that the current state of the Australian economy is less than perfect. Some of these include the continual upwards push of the Australian dollar despite interest rate cuts, flat lining employment levels and below-normal economic growth despite increases in inflation.
With this in mind, please look forward to our rates announcement next Tuesday afternoon – but of equal importance – we hope you are able to pick a winner on the day. We are keeping our fingers crossed for Hawkspur – a four year old who is being Australia’s best hope this year against a strong international field. As we are a proud Australian company our loyalty has to stay at home however the Irish-bred Fiorente is looking dangerous – being the runner–up last year despite carrying more weight this time around.
Click here to speak with a Home Loan Expert and see how your current rate stacks up against the competition.
The Rates Direct Team