5 year fixed rate under 5.00%

I don't either.

Inflation targeting has an anchoring effect on inflation. One of the biggest drivers of inflation is expectations. A credible central bank with a credible inflation target has the ability to anchor inflation expectations.

Its why there's so much effort put into effective central bank governance (independence) in economies around the world.

I don't think anyone can reasonably claim a 'trend' decline in the cash rate as a basis for a continued fall in interest rates. Trend isn't your friend if your using it as a basis for predicting future cash rate. Fast forward 50 years and we'd have negative interest rates indefinitely.

The chart I've shown is a much better reflection of movements in interest rates. There isn't a ongoing downward trend , we are simply in an easing cycle that will one day move back to a tightening one (despite what most real estate agents, brokers, anyone with industry bias will try to purport).

Point is, there has been MASSIVE shifts in the way monetary policy works in Australia. It does mean the days of 10% cash rates are unlikely to be felt as often, if ever, as has been in the past. But it doesn't mean there is a downward trend.
 
Have to agree to disagree with you there old mate. I believe there is a worldwide (western world at least) downward trend that shows no clear signs of reversing at this stage.
 
I have a little conundrum .

I recently fixed 5 odd loans with the last just catching the new low 5 year rates. Off on holidays I go and on my return the last few bank docs are sitting there with confirmation all went through.

I have a read

And there it states that I have a 5 year fixed rate of 5.19% with a full 1 % discount bringing my 5 year fixed rate down to 4.19%

Does this sound very low ???? I have been given 1% discount on all my variables but never on fixed.

I thought a rate around 4.99 was on the table but they have given me a 1% discount instead of the standard .2

Should I question this or just except the full 1% fixed rate discount as it clearly states

Cheers
 
I have a little conundrum .

I recently fixed 5 odd loans with the last just catching the new low 5 year rates. Off on holidays I go and on my return the last few bank docs are sitting there with confirmation all went through.

I have a read

And there it states that I have a 5 year fixed rate of 5.19% with a full 1 % discount bringing my 5 year fixed rate down to 4.19%

Does this sound very low ???? I have been given 1% discount on all my variables but never on fixed.

I thought a rate around 4.99 was on the table but they have given me a 1% discount instead of the standard .2

Should I question this or just except the full 1% fixed rate discount as it clearly states

Cheers

Monopoly.png

pinkboy
 
I have a little conundrum .

I recently fixed 5 odd loans with the last just catching the new low 5 year rates. Off on holidays I go and on my return the last few bank docs are sitting there with confirmation all went through.

I have a read

And there it states that I have a 5 year fixed rate of 5.19% with a full 1 % discount bringing my 5 year fixed rate down to 4.19%

Does this sound very low ???? I have been given 1% discount on all my variables but never on fixed.

I thought a rate around 4.99 was on the table but they have given me a 1% discount instead of the standard .2

Should I question this or just except the full 1% fixed rate discount as it clearly states

Cheers

Take it and run :eek:

What's your online banking say the interest rate is?
 
Yes my gut says take the win as I have documents clearly stating the rate and discount. "IF" it was an error it's theirs so I doubt a repayment would be asked. But no guarantee of this which is where my conundrum lies.

On a side note that have screwed me around since Easter over $3,000 they admit is owed to me. Getting payment has proved painful but that story is another thread in itself.

Feel like just taking this small win .

Cheers
 
I have a little conundrum .

I recently fixed 5 odd loans with the last just catching the new low 5 year rates. Off on holidays I go and on my return the last few bank docs are sitting there with confirmation all went through.

I have a read

And there it states that I have a 5 year fixed rate of 5.19% with a full 1 % discount bringing my 5 year fixed rate down to 4.19%

Does this sound very low ???? I have been given 1% discount on all my variables but never on fixed.

I thought a rate around 4.99 was on the table but they have given me a 1% discount instead of the standard .2

Should I question this or just except the full 1% fixed rate discount as it clearly states

Cheers

What bank is this? I'm refi-ing everything tomorrow.
 
4.19% fixed for 5 years :eek: surely not...
5.19% with a 1% discount after the fix is over ( ie variable ) sounds more normal.
 
Back
Top