Most Australians are expecting more reductions in the official interest rate by the Reserve Bank of Australia (RBA), according to a national survey by leading mortgage broker Priority Lending.
The Priority Lending poll which asked “What action do you expect the Reserve Bank will take on the cash rate in the coming months?’ found 39 per of the respondents expect the RBA to cut rates again at its next board meeting on December 6.
Twenty six per cent of the 555 online poll respondents believed the central bank would lower the cash rate early next year.
Twenty seven per cent of those surveyed thought rates would stay on hold for the next six months, while only eight per cent are anticipating a rate rise in the near future.
Priority Lending Chief Operating OfficerDean Rushtonsaid the RBA’s Melbourne Cup decision to cut the cash rate from 4.75 per cent to 4.5 per cent has been passed on in full by most lenders.
But he said consumers were looking for more relief from the RBA in the lead up to Christmas.
“The RBA cutting interest rates for the first time in more than two and half years did provide some clear direction for consumers,” he said.
“But there is no doubt they will need to cut further to continue to shore up confidence in the current global environment.
“A recent survey we ran showed that the issues occurring in Europe were top of mind for consumers when considering their financial position and these issues are not going away and more cuts are needed to stimulate sectors of our economy.
Priority Lending survey results:
What action will the RBA take on the cash rate in coming months?
A rate cut in December – 39 per cent
A cut in early 2012 – 26 per cent
On hold for six months – 27 per cent
Go back up in 6 months – 8 per cent
Source: Priority Lending
