Wednesday, February 09, 2005

Australian Home Loan Interest Rates

The official interest rate as set by the Reserve Bank of Australia stands at 5.25%, while the typical home loan rate is 6.25%.

At its most recent meeting the Reserve Bank elected to not increase interest rates. However it did warn that there is a strong chance of an increase in interest rates in the near future because the economy is doing so well and it wants to prevent inflation rising. However the National Australia Bank is not so upbeat in their predictions. The next couple of months should make the situation clearer, especially when the quarterly inflation forecast is released in April.

Past rate rises for the last 4 years have been in .25% increments. Australian economists are predicting a rate rise in either March or May of a further .25%.