Cash cycle analysts are warning borrowers to plan for the long term as the Australian Bureau of Statistics reports increasing domestic debt. While the Reserve Bank is unlikely to increase interest rates, when it meets next week, analysts are predicting cash rates to rise early next year.

Inerest, a mortgage comparison website, recently surveyed 18 economists from recognized financial institutions, including all four major banks. All were in agreement that the Reserve Bank would maintain interest rates when next they met. But opinion was divided about movements in the near future. 11 of the 18 believed interest rates would rise within the next twelve months, but were reluctant to speculate as to significance of the rise. The economists from AMP, Commonwealth St George, Urbis, Commsec, and HSBC touted increases before the end of the year.

This serves as a warning to those considering taking on debt to factor in rising repayments. According to the ABS not only are more borrowers are being lured into mortgages, but those mortgages are increasing in size. And while this may be good for the economy in general it may have unwanted effects on the unwary.

About The Author

Someone you can depend on to respect you and care for your dog. Let me help you give your dog the life it deserves.

Leave a Reply

Your email address will not be published.