March rate rise looms large on horizon for home owners
Tuesday February 19, 2008
Economists are confidently predicting yet another interest rate rise for struggling home owners after minutes of the Reserve Bank of Australia (RBA) board meeting in early February was released today.
The minutes from the RBA's board meeting reveal a 0.5 percent rate rise in the official cash rate was strongly considered and the fact that the major banks had already hit consumers with an interest rate rise before the official interest rate rise announcement by the RBA saw the rate only go up .25% to 7%.
However, while borrowers dodged a bullet this month, it is highly likely that not only will there be an interest rate rise on their home loans next month but there is also a distinct possibility there will be another interest rate rise the following month according to the RBA release.