06 Dec Will the Banks be Generous?
As I write this, we await the decision of the RBA this afternoon on monetary policy. The question we all want to know is, will an interest rate reduction be passed? And if we have an interest rate reduction, will the banks pass the interest rate reduction on? The banks advise the cost of funds has increased. If they do, many will only partially pass on the interest rate reduction. The other point to consider is all the fixed interest rates are lower than the variable interest rates. The question is, do you take a fixed interest rate now? For further discussion we would welcome your call.