Borrowers are expecting more interest rate cuts in the months ahead, a survey has found.
A Loan Market poll which asked borrowers where they expected rates to move in the coming months has indicated the majority expect more cuts from the Reserve Bank. Thirty-nine per cent of respondents expect the cash rate to be cut again at the RBA's next board meeting on 6 December, while 29% said they expected a cut early next year.
Only 8% of respondents expected a rate hike in the near future, and 27% said rates would stay on hold for the next six months. Loan Market COO Dean Rushton said consumers needed further cuts to shore up shaky confidence in the midst of gloabal instability.
"A recent survey we ran showed that the issues occurring in Europe were top of mind for consumers when considering their financial position and these issues are not going away and more cuts are needed to stimulate sectors of our economy," Rushton said.
Nevertheless, Rushton said the RBA's November cut had provided "clear direction for consumers", with most lenders passing on the cut in full.
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