Home loan interest rate rise tipped for November

Economists say another interest rate rise is possible in November, as the United States economy retreats from the edge of a recession.

Stronger than expected jobs growth saw shares on Wall Street rally last Friday, and gave analysts good reason to reassess their gloomy outlook for the US economy.

But that positive news for the US may prompt the Reserve Bank of Australia (RBA) to push the official cash rate to 6.75 per cent at the November board meeting.

Had recent US jobs data not been so strong, the RBA’s options for increasing interest rates and curbing Australian inflation would be more limited.

Economists say the overall health of the global economy, and inflation figures due in late October, will be strong points of consideration for the Reserve Bank at the November meeting on Melbourne Cup day.
Source: ABC

About: Rick Adlam: Rick Adlam has been helping clients with home loan finance since 1985 when he was home consultant with AV Jennings. Rick started Equity Home Loans in 1996 to help homeowners become property investors. Rick currently consults in the development of Mr Mortgage for mortgage brokers and HomeMate for new home buyers. Website: http://www.mrmortgage.com.au