Should I float on variable or fix my home loan interest rate?

There is a common view from the financial gurus in Australia that variable interest rate rises are inevitable. From financial commentators to bank economists to the Prime Minister, the view is that during 2010 the Reserve Bank will move the cash rate up. How much? We don’t know, but the PM suggested about 1% by July. Also, banks have not discounted raising interest rates independently of RBA decisions.

What does this mean to home loan borrowers? Let’s take a look. Read More »


Posted by Iden on Wednesday the 16th of September, 2009. 22 Comments »

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Interest rate put on hold for fourth month in a row

Interest rates were left on hold for the fourth month in a row and signalled the end to its recent rate cutting cycle, economists said after the RBA decision to leave the cash rate at 3% on Tuesday.
RBA governor Glenn Stevens indicated monetary policy was now on a neutral footing.  Here are some of his comments:

“The board’s judgment is that the present accommodative setting of monetary policy is appropriate given the economy’s circumstances,” Mr Stevens said. Read More »


Posted by Iden on Wednesday the 5th of August, 2009. 3 Comments »

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Tips On Interest Rates – Fixed & Variable Interest Rates

Variable Interest Rates

Variable interest rates in Australia are generally set against the Reserve Bank’s “Cash Rate.” This rate is used by the RBA to make adjustments to monetary policy so that such things as people’s spending capacity can be controlled. By controlling our ability to spend, the Reserve Bank and the Australian government can achieve desired outcomes for such things as levels of employment and inflation, thereby controlling the economy.They do this by adjusting the Cash Rate up or down, dependent on whether they want us to loosen or tighten our spending habits. Read More »


Posted by Iden on Wednesday the 3rd of June, 2009. 4 Comments »

Read related subjects to this article from Iden Money on Interest Rates.