Clearer Picture On Rates Over Next 3 Weeks

We should get a clearer picture as to the future direction of domestic interest rates with the release of crucial financial data and the Reserve Bank’s outlook over the next few weeks.

Tomorrow the RBA’s Governor, Mr. McFarlane is due to give a speech, followed on Wednesday by the release of the Australian March quarter CPI and underlying inflation figures. Next week the RBA releases its semi annual statement on monetary policy and the latest data on retail trade and employment will also be made available. This is all followed by the 1998-99 Federal Budget.

So by mid May those punting on whether to leave their home loan rate variable or lock in should be in a better position to pick the right way to go.