Experts insist rates will come down again

Friday 24 April 2009

Article by Mozo

The Reserve Bank of Australia (RBA) will introduce more interest rate cuts before 2009 is through, CreditSuisse has insisted.

In a report on Friday (April 24th), the bank estimated that the cash rate will fall another fifty basis points to reach 2.5 per cent by October.

That could mean that you end up paying less on home loan interest payments. Alternatively, you could use a drop RBAinterest rates to overpay on your loan, helping you to become a homeowner earlier.

Commenting on the bank’s predictions, Bradley Harper, Credit Suisse’s head of Asia Pacific interest rate trading, told the Sydney Morning Herald: "It’s acknowledged that central banks will be quick to normalise rates once confirmation of the upturn is cemented."

Despite speculation that further interest rate cuts may be in the pipeline, some of the country’s major banks have courted controversy this week with the announcement that they will be raising interest levels on some of their fixed-rate home loans.

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