Bank rises spur rate cut rumours

Loan Market corporate spokesman Paul Smith said 27 per cent of the 832 online poll respondents thought it would be a factor among other considerations for the RBA on Tuesday.
Loan Market corporate spokesman Paul Smith said 27 per cent of the 832 online poll respondents thought it would be a factor among other considerations for the RBA on Tuesday. Kieran Salsone

MOST home loan customers expect the Reserve Bank of Australia (RBA) to lower official interest rates next week in response to lenders lifting their variable rates independently, a survey has found.

The Loan Market poll which asked "How much influence do you think recent rate rises by lenders will have on the RBA decision in March?' found 44 per cent believed it would be a significant driver for a rate reduction.

Loan Market corporate spokesman Paul Smith said 27 per cent of the 832 online poll respondents thought it would be a factor among other considerations for the RBA on Tuesday.

He said 24 per cent of those surveyed thought it would have no influence on the RBA board while five per cent said it was too hard to call.

"Many Australians expect the RBA to react to lenders ignoring its decision to leave the cash rate on hold at 4.25 per cent last month and independently lifting their variable rates by modest amounts," Mr Smith said.

"More than 70 per cent of our respondents are anticipating a counter attack from the central bank with almost half of those surveyed expecting a strong response from the RBA by cutting the official rate.

"That would put a lot of pressure on lenders to follow suit even though they have cited the current high cost of funding and overseas market conditions as the reason to increase their variable home loan rates.

"While the fundamentals of the Australian economy remain quite strong and consumer sentiment has been improving, sections of the economy can only benefit from the stimulus provided by lower interest rates."

Loan Market survey results:

How much influence do you think recent rate rises by lenders will have on the RBA decision in March?

  • 44% - It will be a significant driver for a rate cut
  • 27% - It will be a small factor among many to consider
  • 24% - No influence at all
  • 5% - Too hard to call

Topics:  big banks, cash rate, interest rates, rba




Local Real Estate

finda logo
Featured Real Estate
Warmth, Style & Location... offers over...
5 2 2
2 HOMES ACROSS 40... $1,200,000
House 9 5 8
3,093 M2* WAREHOUSES AND... Price On...
Commercial *LARGE OPEN SPAN WAREHOUSES IN PRIME LOCATION *OPEN TO EXPRESSIONS TO LEASE ...
Quality Warehouse/Office... $399,000
Commercial Fantastic modern design to suit multiple usages Warehouse- 187m2*, Showroom- 15m2*, Upstairs ...

Featured Jobs

finda logo

Ipswich jobs listed daily


Featured Jobs
Diploma Qualified... Sadliers Crossing Full Time


Local Partners

LATEST DEALS AND OFFERS

Great Gardening...

Win a $500 gardening gift voucher
Learn More

Cars For Sale

Find cars for sale online now.
Learn More

Property Listings

Post an ad from $30
Learn More

Local Profile

Stay Connected

Get the news as it happens, in your inbox

You can change the newsletters you are subscribed to when you edit your profile

Edit Profile


Special Offers

Latest deals and offers

View today's ePaper!

Read the digital edition
Learn More

Horoscopes

Libra

You could be invited somewhere that you find very uncomfortable. You'll remain polite, but you will not enjoy the experience. Demands at...

read more

Marketplace

Special Offers & Promotions

Compare & Save