Low rates are the new normal

Low interest rates could be the “new normal” for the next few years according to a mortgage industry expert.

The Reserve Bank of Australia has kept the cash rate at a record low of 2.5 per cent since August last year.

Historically standard variable rates have averaged between 7.5 per cent and 8 per cent.

“We are likely to see interest rates below the average for the next few years,” said mortgage industry expert John Kolenda.

Source: Broker News