Low rates to stay for another year

Smartline executive director Joe Sirianni says interest rates are set to remain low for at least another year.

“All the indicators are that there will be a relatively long period of historically cheap variable rate home loans,” he said.

“Even if rates do rise in early 2015, predictions are that this will be only a 0.25 per cent increase, which will still mean rates will be at some of the lowest levels ever seen.”

Westpac also forecast that the cash rate would remain at 2.5 per cent throughout 2014.

Meanwhile, Mr Sirianni urged Australians not to take the current economic environment for granted.

Source: The Adviser