Interest Rates are on the up
THE big banks have moved to increase interest rates on standard variable home loans in what is likely to be the first of many rate hikes. Westpac and Commonwealth Bank are the latest to announce rate hikes, raising standard variable rates.
Surprising jobs figures today suggest Tuesday’s rate rise by the Reserve Bank is the first of many as the economy springs back to health.
Economists now rate the chance of an interest rate hike on Melbourne Cup day – the next time the RBA meets – as a certainty.
“The September labour force data was unequivocally strong and reinforces our forecast for a follow up 25-basis-point rate hike in November,” Westpac analysts said.
Financial markets have rallied and predicted there is a 97 per cent prospect that the RBA will raise the official cash rate by another 0.25 percentage points, The Australian reported.
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