Interest rates and crystal balls
As we all know, interest rates rose again for the 12th time and many of the banks are expected to increase rates even more than the 25 base points increase in the official cash rate announced by the Reserve Bank.
Its interesting to note that the reason many banks have and are considering again to increase their rates above the official cash rate has been blamed on the cost of wholesale funds, primarily from the states. I guess nobody at the banks wants to point out at that over the past couple of days the mortgage rates in the US have dropped dramatically from the insane levels of just last month and are expected to drop even further over coming months.
(more…)