Bank governor won't hold back

Thursday 29 January 2009

Article by Mozo

Reserve Bank governor Glenn Stevens isn’t going to hold back next week when the time comes to have another look at base rates, the Advertiser’s finance expert Terry McCrann has insisted.

The money guru anticipates that Stevens is likely to continue as he left off in December, opting to slice either 75 or 100 points of the base rate.

Such a manoeuvre could bring a new wave of low-interest home loans into play and would likely be welcomed by first-home buyers who have been struggling to get into the market.

“There is no chance of the board members cutting by only 25 or 50 points and self-evidently they aren’t going to sit on their hands,” McRann insisted, an assertion that may encourage first-home buyers to hold out a little longer before heading off to the bank for a loan.

Such a strategy may find favour with the Sydney Morning Herald’s property expert David Koch, who said earlier this week that the time will soon be ripe to get locked into a long-term low-interest home loan.ADNFCR-1761-ID-18999427-ADNFCR

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