Experts back a big rate cut for Christmas

Friday 28 November 2008

Article by Mozo

The Reserve Bank is likely to take one last hack at interest rates before the new year gets underway, experts have predicted.

In a poll carried out by the Australian Associated Press, all 18 economists agreed that there was going to be a cut after the December Bank meeting – the only disagreement was how low rates will go.

Eleven predicted that the interest would be pegged back to 4.5 per cent, while others reckoned it could go as low as 4.25 per cent.

Such a move could leave the market awash with low-interest home loans, while personal loans, credit cards and car loans may come down too.

The news agency pointed out that average home loan repayments on a $200,000 mortgage could come down from $1790 to $1662 a month if a 75 point cut is enacted.

Meanwhile, celebrity money expert Paul Clitheroe has claimed in an article on thedaily.com.au that the recent rate cuts have helped credit unions reduce the price of car loans considerably, while banks and building societies are also offering some good motor finance deals.ADNFCR-1761-ID-18902966-ADNFCR

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