Banks cut fixed interest rates
There has been some movement on the interest rate front this week and it’s not just the major banks cutting fixed rates, but also the 2nd tier banks and non-bank lenders.
Fixed rates have become the new competitive market to attract you and at the end of the day, consumers are winning and enjoying lower interest rates.
So why are the banks cutting fixed interest rates?
There has been speculation in recent times that the Reserve Bank of Australia (RBA) could be reducing the official cash rate before the end of the year, with some experts predicting as much as a 0.5% reduction at the next RBA sitting on the first Tuesday of September.
While it would be very optimistic to expect such a large reduction in one hit, with the banks and lenders reducing their fixed rates – it’s certainly a good sign as to which direction the official cash rate is going to go.
The reduction of fixed rates by the banks does not mean the RBA will reduce the official cash rate, but it is an indication of where the financial analysts working for the big banks think it’s heading.
If you want to talk to a financial professional about interest rates and which loans suit you best, please email or call them on 1300 2 CHOICE.
You can even pop into one of their offices in selected Porter Davis displays. Let them help you make the most of your finances.