Current Fixed Rates

[abcdiamond]

St George Bank today increased their 5 year fixed rate from 8.45% to 8.69%.

Their 1 to 4 year rates went from 8.55% to 8.69% also.

Is this an indication of how they think rates are going in the long term?

 

[MarkB]

Firstly, it's the cost of money for them, so it doesn't reflect their attitudes towards future interest rates, so much as those of the financial markets.

"A flat yield curve is observed when all maturities have similar yields... A flat curve sends signals of uncertainty in the economy."

Source: Wikipedia, Yield Curve

M

 

[dantheman]

Yeah it hasn't only been St George raising them, although they were one of the last ones to do it.

Even after the increase, their rates are still the lowest of the big 5 and better than many non-banks. Sure they are higher than variable rates, but that's not likely to last come next Wednesday's RBA meeting

Dan