Rates Rises In Labour Control
February 12th, 2010
SMH has reported that the RBA has opened up that if the Labour Party continues to keep its pledge of low spending then, it (The RBA) shall continue to hold the prospect of low interest rates.
If the Government is committed to reduced spending and thus lower its outstanding debts, then we could expect to see short low interest rate rises for the foreseeable future. In return, the Government’s current debts will be cheaper to pay off and thus this would keep rates lower for private borrowers while the economy steadily recovered.
Simon Reibelt from Oasis Home Loans Northern Beaches saw this move by the RBA and Government as both positive for its own position and that of all other borrowers in the economy.