Interest rates could drop further in February
Interest rates could be in for a pleasant surprise next month with finance experts already predicting the Reserve Bank could cut the cash rate in their first meeting of the year.
The cash rate is already on its lowest in recorded history at 1.5 per cent and could be set for another cut as soon as February or March according to experts.
Finder.com.au’s latest RBA survey has 52 per cent of experts predicting a rate cut this year, with four experts expecting the rate cut as soon as February.
However, Money Expert Bessie Hassan warned historically low rates might not be enough to stop banks from hikes.
“Out-of-cycle rate hikes could be a theme in 2017, with several lenders including Westpac, Bank of Sydney and P & N recently announcing rate hikes, marking the second out-of-cycle home loan rate hike since November 2015,” Ms Hassan said.
“86% of experts surveyed on this topic said out-of-cycle rate increases are likely to continue in 2017.”
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