Macquarie Bank now joins the chorus for rate cuts, along with Capital Economics and all the rest.
Financial markets, nek minnit...
How much of a solitary 25bps cut would be passed on by lenders is another question (though cuts often seem to come in pairs).
But either way my hunch is this would still make a difference to consumers after some of the scaremongering 'soaring rates' commentary, while bond yields have eased.
But either way my hunch is this would still make a difference to consumers after some of the scaremongering 'soaring rates' commentary, while bond yields have eased.
New mortgages are typically assessed at a serviceability rate of 7½ per cent, despite there being little imminent prospect of higher rates.
Owner-occupier mortgages are available from around 3½ per cent.
That's a helluva lot of buffer, as Deputy Guv'nor Dr. Debelle might say.
That's a helluva lot of buffer, as Deputy Guv'nor Dr. Debelle might say.
