Experts predicting further interest rate rises after Easter
National Australia Bank chief economist Alan Oster said the challenge of Australia’s rapidly growing economy would prompt the RBA to make further rate increases at its next meeting on April 6th, the Australian Associated Press reported.
Meanwhile, Commonwealth Bank said that while it predicted the RBA to keep rates on hold in April, it expected a rate increase in May after the central bank had considered consumer price index data from the March quarter.
It added that of the remaining nine monetary policy meetings this year, it expects the RBA to raise rates at four of them.
However, despite fears of higher repayment costs and further borrowing pain for mortgage customers, treasurer Wayne Swan said at the weekend that the government was investing funds to support smaller, non-bank lenders, thereby promoting competition and helping Aussies who wish to compare home loans in search of the best deals.
Last week, mortgage broker Loan Market Group said that Australians are becoming increasingly active at the top end of the property market, resulting in a surge in ‘prestige’ home loans in excess of $800,000.
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