Hi, I haven't been following the trend in fixed interest rates lately but noticed the current Bank of Queensland rates are as follows:
Fixed
1yr = 7.04%
2yr = 7.19%
3yr = 7.34%
4yr = 7.74%
5yr = 7.84%
Variable
7.86%
I thought it was fairly certain we will be in for higher interest rates due to higher inflation over the coming years so wouldn't it make more sense to see the fixed rates currently higher than the variable rate? It's almost as if the Bank of Qld (and I haven't checked the other banks yet) are expecting variable rates below 7% over the next 5 years.
Thoughts anyone?
Fixed
1yr = 7.04%
2yr = 7.19%
3yr = 7.34%
4yr = 7.74%
5yr = 7.84%
Variable
7.86%
I thought it was fairly certain we will be in for higher interest rates due to higher inflation over the coming years so wouldn't it make more sense to see the fixed rates currently higher than the variable rate? It's almost as if the Bank of Qld (and I haven't checked the other banks yet) are expecting variable rates below 7% over the next 5 years.
Thoughts anyone?