The RBA has not closed the door on further rate cuts this year, according to the minutes of its Monetary Policy Meetings in June and July.

However, if inflation is heading below the 2 to 3% target, is there any pressure to reduce interest rates? No, and that’s what the money market rates are suggesting for the short term – no movement from the RBA in the next 6mths.

So…rates are staying put.

On the flip side, Chief Economists from two of the major banks last month published their opinion stating the official cash rate will fall by at least another 50 basis points in the coming 6 months. They reckon the threat of high unemployment will spook property investors, and the whole economy will need a boost.

So, according to the bank economists, rates are going down.

It seems no one is sure where short term interest rates are headed right now. Whatever happens, rates are at historical low levels, and if you find a good investment that earns you a good return, talk to Plan Assist on 02 9449 2333 to help consider loan funding at historically low rates.