Westpac, rates drop prediction
Momentum is building for official interest rate cuts with Westpac’s Bill Evans becoming the first of the big four bank economists to predict the Reserve Bank of Australia will move as early as February.
Mr Evans said cuts were needed after a “shocking” set of national accounts showed NSW was the only state to record domestic growth last quarter.
Felicity Emmett, a senior economist at ANZ Bank, also pointed to potential changes to the bank’s view rates would go up next November.
“I think the outlook has changed a bit now and the chances of a decrease is higher and we’ve seen a few [forecasting] houses reflect that,” she said.
The one thing that is of primary importance here is that people should not get carried away with buying too many properties that are not positive geared. If they do and rates go up then unless they determined their surplus properly, they would be exposing themselves to negative impacts on their lifestyle.
In The Financial Review Friday: http://www.afrsmartinvestor.com.au/p/fixed-income/westpac_joins_rate_cut_calls_kdNkL2aK85t5qskEuCTnIO