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My only concern with this is, if the sub 5% rates are related to cheaper lending which is a "limited time/quantity" offer and not with RBA rates, then what is to say 5 year rates wont go up when this cheap borrowing runs out?
what keith said.
When 3 year fixed last went to sub 5 there was a rush to fix. Those that did are half way through thier term and still out of the money.
Wouldn't you rather have a 6yr fixed rate under 5% ? If so, then stick with variable for a year & then fix at <5% for 5 yrs this time next year. I'd expect we'll get a bit of notice that fixed rates are going up.
That's my thinking ..
Everyone was surprised by the sub 5 , 5 years
Most
not all
So what are your thoughts on the 4.99% "limited quantity cheap borrowing" concept - do you think rates will go back up to 5.6+% when this money runs out then slowly decline with rate cuts / expected RBA rate stability?
Not that my view counts for much but I'd say that this time next month, another set of data showing a rise in unemployment will have the 'experts' calling another rate cut in the near future.
A strong AUD and a strong trend in increasing unemployment is something I would not want to bet against by fixing at the moment.
Most
not all
ta
rolf
that's a problems rolf . How does the average punter know who to listen too ?
are you right 100 % of the time ?
I know I'm not .. 99 % maybe
Listen to the market. It's dictated by the best brains that manage trillions of $$ so they have the most to win/lose. The market says no rise in rates for 18 months... and a cut is far more likely.that's a problems rolf . How does the average punter know who to listen too ?
I don't thing anyone is suggesting fixing as a Bet . It's a risk management exercise .
Cliff
I reckon you should be guided less by your fears and more by your dreams
So what are your thoughts on the 4.99% "limited quantity cheap borrowing" concept - do you think rates will go back up to 5.6+% when this money runs out then slowly decline with rate cuts / expected RBA rate stability?
RBA cash rate history from 1990
Interesting chart - convenient starting point. QUOTE]
That's as far back as the RBA series goes on their website. Before that I would love to see the history but I don't think it was as transparent before that.
I was trying to show the trend (excluding that 20% -10% in the early 90's) has been slowly down.