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MAKING NEWS

Sun, 05 September 2010
Interest rate rises: question is when, not if * By Eoin Blackwell
BORROWERS are likely to be spared an interest rate rise from the Reserve Bank on Tuesday because of a series of mixed economic indicators over the past month.

All 15 economists surveyed by AAP this week said they expected the RBA to leave the cash rate at 4.5 per cent after the central bank board meets for its regular monthly meeting on Tuesday morning.

But analysts are less sure about when the next rate rise will happen, with seven of the 15 surveyed expecting a rate rise of between 25 and 50 basis points in the final three months of 2010.

A 25 basis point (quarter of a per cent) rate rise will add about $50 to the monthly repayments on a $300,000 mortgage.

ICAP economist Adam Carr predicted two 25 basis point hikes in the December quarter because of the risk of inflationary pressures over the rest of the calendar year.

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Simple Tips On Getting Your Loan
So, you want to get a loan? Here are some simple tips that will help you make an informed decision about what kind to buy, and who to buy from ... more

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Knowledge Base

Equity: The amount of (or that portion of) an asset actually owned. Equity is the difference between the market value and the current amount of money still owing on the loan. This is also referred to as the ‘owner’s interest’.

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