Property

Bank rises spur rate cut rumours

Loan Market corporate spokesman Paul Smith said 27 per cent of the 832 online poll respondents thought it would be a factor among other considerations for the RBA on Tuesday.
Loan Market corporate spokesman Paul Smith said 27 per cent of the 832 online poll respondents thought it would be a factor among other considerations for the RBA on Tuesday. Kieran Salsone

MOST home loan customers expect the Reserve Bank of Australia (RBA) to lower official interest rates next week in response to lenders lifting their variable rates independently, a survey has found.

The Loan Market poll which asked "How much influence do you think recent rate rises by lenders will have on the RBA decision in March?' found 44 per cent believed it would be a significant driver for a rate reduction.

Loan Market corporate spokesman Paul Smith said 27 per cent of the 832 online poll respondents thought it would be a factor among other considerations for the RBA on Tuesday.

He said 24 per cent of those surveyed thought it would have no influence on the RBA board while five per cent said it was too hard to call.

"Many Australians expect the RBA to react to lenders ignoring its decision to leave the cash rate on hold at 4.25 per cent last month and independently lifting their variable rates by modest amounts," Mr Smith said.

"More than 70 per cent of our respondents are anticipating a counter attack from the central bank with almost half of those surveyed expecting a strong response from the RBA by cutting the official rate.

"That would put a lot of pressure on lenders to follow suit even though they have cited the current high cost of funding and overseas market conditions as the reason to increase their variable home loan rates.

"While the fundamentals of the Australian economy remain quite strong and consumer sentiment has been improving, sections of the economy can only benefit from the stimulus provided by lower interest rates."

Loan Market survey results:

How much influence do you think recent rate rises by lenders will have on the RBA decision in March?

  • 44% - It will be a significant driver for a rate cut
  • 27% - It will be a small factor among many to consider
  • 24% - No influence at all
  • 5% - Too hard to call

Topics:  big banks, cash rate, interest rates, rba


Join the Community.

Get your local news, your way.

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Girl in paradise video evokes Airlie pride

World traveller Nina Wilson, who grew up in the Whitsundays, has made a video showing off the region.

Video captures the beauty of the Whitsundays

Sporting clubs rally against domestic violence

Proserpine and Whitsunday Junior Rugby League Club president Kevin Young and under 16s team Joel Hoffman, Ben Young, Nick Dierna, Josh Colborne, Aden Spence, Oakley Ngakura, Jack Durnsford, Jake Harrison and counsellor Jan Waetford (back), with Jack Handley, Mitch Cann, Ben Cornish, Malachai Lane and Brad Barbeler (front). Photo Lucy Smith / Daily Mercury

Rugby league club joins anti-violence campaign

Wintermoon has finally arrived

WARMING UP: Popular band Perch Creek will perform at the upcoming 20th Wintermoon Festival this weekend.

Wintermoon has finally arrived

Latest deals and offers

Throw away the key

IT’S almost time to lock up some local identities to give our youth a leg up in life.

Girl in paradise video evokes Airlie pride

World traveller Nina Wilson, who grew up in the Whitsundays, has made a video showing off the region.

Video captures the beauty of the Whitsundays

Sporting clubs rally against domestic violence

Proserpine and Whitsunday Junior Rugby League Club president Kevin Young and under 16s team Joel Hoffman, Ben Young, Nick Dierna, Josh Colborne, Aden Spence, Oakley Ngakura, Jack Durnsford, Jake Harrison and counsellor Jan Waetford (back), with Jack Handley, Mitch Cann, Ben Cornish, Malachai Lane and Brad Barbeler (front). Photo Lucy Smith / Daily Mercury

Rugby league club joins anti-violence campaign

Wintermoon has finally arrived

WARMING UP: Popular band Perch Creek will perform at the upcoming 20th Wintermoon Festival this weekend.

Wintermoon has finally arrived

Sam Cornish to captain Stingers under 19s

NEED FOR SPEED: Sam Cornish chases after a Townsville player during a North Queensland Championship game.

Rugby union games next week

UPDATE: RSPCA ask for help with dead dogs investigation

No Caption

An image of four dead dogs on Facebook leads to RSPCA investigation.

What's on in the region this long weekend?

Wintermoon Music Festival, Camerons Pocket, April 30th- May 3rd, 2015. Photo Lee Constable / Daily Mercury

Take a look at what's on in the region this long weekend.

Girl in paradise: Whitsundays video

Nina Wilson made a video capturing the beauty of the Whitsundays, where she was...

RACQ releases SE Qld's worst choke points

Paul Turner, RACQ

Paul Turner from RACQ talks about our worst roads at peak time.

British family bashed in Thailand

Family beaten and kicked unconscious by gang in Thailand.

Family beaten and kicked unconscious by gang in Thailand.

Demand for acreage lots pushes up property prices

Property values in Cooroy have increased 25%

Property values jump in Cooroy and Peachester.

How a sacked real estate agent made $725k in four months

Agent is now under investigation by the industry watchdog

RBA warns of future apartment oversupply

Toowoomba: Crest Apartments and Burke & Wills, Ruthven Street ( view from Neil Street) Photo Bev Lacey / The Chronicle

RBA says oversupply of apartments poses risk to household finances