Home News Expect a hike in interest rates this year

Expect a hike in interest rates this year

Font size :

RBA may raise interest rates towards the end of the year.

The Organisation for Economic Co-operation and Development (OECD) is forecasting rising interest rates towards the end of the year on the back of growing wages and inflation.

The Reserve Bank of Australia has maintained the record-low 1.5% interest rate since 2016 in an effort to boost growth and hiring. For policymakers, employers would need to pay more to attract workers as prices rise and unemployment dip by below 5%.

“Withdrawal of stimulus is projected to begin towards the end of 2018, as wage and price growth are expected to pick up further on account of a continued strengthening of activity and labour market performance," OECD told Bloomberg.

OECD added that the wages growth would ease the risks associated with the country’s high household debt levels.

It also projects Australia's economy to record a 2.9% growth this year and 3% in 2019, as unemployment decline by 5.4% and 5.3%, respectively.

Meanwhile, the organization noted that unexpectedly large corrections in home prices could cut household wealth, reduce consumption, and negatively impact the construction industry.

Related Stories:
Low-interest rates limit price growth, economist says
Reserve Bank’s cash rate may not budge until 2020

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

Buyers seek brokers' help to navigate the home loan market Buyers seek brokers' help to navigate the home loan market

There is a surge in borrowers availing themselves of mortgage brokers Read more

Big Four’s customer satisfaction drops due to the Royal Commission Big Four’s customer satisfaction drops due to the Royal Commission The country’s four major banks saw a 3.6% drop in customer satisfaction rating ... Read more

Aussies still troubled by housing costs despite market downturn Aussies still troubled by housing costs despite market downturn The rate of decline is not enough to make homes affordable to most first home buyers ... Read more

The Keys to Performing a Proper Property Inspection The Keys to Performing a Proper Property Inspection A property inspection is key when you're serious about buying a home or property, but how do you know what to look for? ... Read more

More mortgage news and articles

Sponsored Links

Tuesday, Oct 23, 2018
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords