There is a lot of talk about rates in the media and I would like to ask how people think the election will impact rates for the next 12 months?

Hi Jackson,
There are so many proposals being thrown around it is hard to imagine how interest rates may be affected.
Just my opinion, if retail sales remain soft and property in metro Sydney continues to stagnate the only likely move is down.
International Events will probably have a bigger effect on our interest rates than the election
I would suggest that you don’t try to guess what will happen with rates and ensure that any strategy you employ is fundamentally sound and taken with a long term view
Best of luck
Scott

Hi Jackson,

The reserve bank has recently said there could be a movement downwards depending on how the economy goes.

However, we have seen many times before the banks changing rates outside of the RBA so there is no guarantee that any rate cut would be passed on. We could actually see mortgage rates go up some more.

All the best.
James

Hi Jackson,

worry less about interest rates and more about the effect of a couple of key Labour proposals:
1> no more negative gearing
2> no more refunds of imputation credits
3> reduction in contributions caps

these things have more potential to affect you than a change in interest rates......because these things could cause a significant shift in the investment strategies of a large number of people, both in retirement and still working. And THAT could extract every last drop of jam out of your investment donut!!!

Interest rates will be determined by the bank themselves......the RBA really has little or no actual control over what the banks charge, as evidenced by recent rate increases by some of the banks.

And in reality rates are LOOOWWWWWW!!!! Anyone who can remember as far back as 1985 will tell you stories of paying over 20% on P&I loans to the Major banks (not the toe-cutter mafia types....the BIG FOUR!!!)

So if rates go from 3.8 to 4.1......what impact does this have on you???? Do yourself a budget, figure out how much pain you can tolerate and make your decisions based on this. I am sure you already have done this, but as general advice to anyone reading this, do a budget, and use figures that assume worst case scenario as well as best case to do your planning