colinrealestate

The Reserve Bank met expectations last week when they left the cash rate unchanged at 2.5%. The RB won’t now tighten monetary policy until mid-2014 rather than early in the year. So we have shifted our forecast timing for the first OCR increase to June from March. Then cahnge highlights the key point that predicting interest rates over the past three years is difficult. Therefore what borrowers need to focus on when considering how to manage their exposure to interest rate changes, spread one’s risk, one third floating, one third short term which is 18 months –2 years and another third on a longer term.

Filed under: REAL ESTATE | Tagged: Real Estate