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RBA Rate Outlook for 2016

We offer mortgage broking to clients in the Perth area and we feel it would be helpful to discuss where mortgage rates could be going in 2016. While we have been a trusted name with more than 70 years of experience in providing financial advice in the Perth area, our affiliation with AMP Capital has brought us one extremely trusted resource: Dr Shane Oliver.

Dr Oliver is the Head of Investment Strategy and Economics at AMP Capital. He is also their Chief Economist. Recently, Dr Oliver wrote an article on the AMP Capital company blog called, “2016 – a list of lists regarding the macro investment outlook.” We are covering various aspects of the piece on this blog.*

While the blog covers mostly investment strategy, it also has some information that is relevant to mortgage broking professionals and those who want to add investment property to their portfolios: Dr Oliver’s speculation and forecast about the RBA cash interest rates.*

RBA Rate Outlook By Mortgage Broking Firm in Perth

Dr Oliver provided “five reasons why the RBA will likely cut interest rates further.” We would like to summarise them for you.*

Five Reasons Why Dr Oliver Believes the RBA Will Likely Cut Interest Rates Further

    1. The business investment outlook is still weak.
    2. Contribution of housing to growth is slowing and another rate cut would offset it.
    3. Commodity prices have not rebounded as highly as many expected.
    4. The Australian Dollar is too strong and needs to drop further.
    5. To offset monetary tightening from lenders who have risen mortgage rates.*

Call Approved Financial Planners in Perth Today

At Approved Financial Planners, mortgage broking is one of the many services we offer to the Perth community. With the full resources of AMP and AMP Capital behind us, we can find a finance solution that works for your individual needs.

To learn more or for an obligation-free consult, call us today: 08 6462 0888.

*AMP Capital, Dr Shane Oliver. “2016 – a list of lists regarding the macro investment outlook.” 21 January 2016.