Westpac forecasts higher interests rates: Borrowers warned to brace for higher repayments
Monthly repayments could soon cost borrowers a lot more cash if Westpac’s predictions for rate rises do come to fruit...
The Reserve Bank of Australia has decided to leave the official cash rate on hold at 3.5 per cent at its monthly Board meeting.
The decision to leave the cash rate on hold surprised few, with 21 economists all predicting rates would stay on hold in July.
According to RP Data's research analyst Cameron Kusher, the economy is in pretty good shape at the moment, providing the Reserve Bank with some breathing space when it comes to rates.
"The RBA have no doubt looked at a lot of data and they realise that they have time on their side," he toldThe Adviser.
"There is a chance that interest rates will go lower before the end of the year, but that will ultimately depend on inflationary figures - which will be released at the end of July."