The larger than expected drop in the Official Cash Rate signals a shift in financial markets that will flow on through the next year.
Quote:
Whether you are a borrower or an investor, it’s time to review your strategy.
For the last two years we have all adjusted to an environment where bank interest rates for deposits and mortgages have been unusually high, to the benefit of investors and the detriment of borrowers. This was a deliberate policy on the part of the Reserve Bank to curb inflation and suppress the rapid rise in property prices.
Quote:
Whether you are a borrower or an investor, it’s time to review your strategy.
For the last two years we have all adjusted to an environment where bank interest rates for deposits and mortgages have been unusually high, to the benefit of investors and the detriment of borrowers. This was a deliberate policy on the part of the Reserve Bank to curb inflation and suppress the rapid rise in property prices.
The article is from our finance blogger - Liz Koh
Cheers,
Donna
