Most home loan customers expect the Reserve Bank of Australia (RBA) to lower official interest rates again before the end of the year, a national survey has found.
The Priority Lending poll which asked “Do you think the RBA will lower interest rates again in 2012?’ found 64 per cent of respondents believed there would be another rate cut.
Priority Lending Corporate Spokesman Paul Smith said 46 per cent of respondents thought rates will drop by 25 basis points, 15 per cent expect rates to fall 50 basis points while three per cent predicted a cut of more than one percentage point.
Mr Smith said 36 per cent of the 865 online poll respondents said there will be no reduction in the current official rate of 3.5 per cent by the RBA before the end of 2012.
“Although many economic forecasters are tipping the RBA to stay on the sidelines, the consumer sentiment is clearly in favour of further rate relief,” Mr Smith said.
He said the 75 basis points reduction in the cash rate over May and June had been beneficial but a cloud remained over the housing and retail sectors.
“The RBA has been keeping rate cuts in reserve in the event of any deterioration of the domestic economy or more bad news fromEurope,” he said.
“But consumers would clearly like another helping hand from the RBA and rate relief could provide a welcome boost to their confidence in the lead up to Christmas.”
Mr Smith said mortgage holders anxious for more rate relief should see if they can secure a reduction independently of any RBA decision.
“It costs nothing to ask for a lower interest rate or to talk to another lender. A mortgage broker is best placed to advise on the most competitive home loans on offer.”
Priority Lending survey results:
Do you think the RBA will lower interest rates again in 2012?
Rates will drop 25 bps – 46%
Rates will drop 50 bps – 15%
Rates will drop more than 100bps – 3%
Unchanged – 36%
Source: Priority Lending
