In spite of yesterday's RBA
hold, one industry figure has told consumers they can definitely expect bank cuts.
With the RBA
following economists' expectations yesterday by leaving the cash rate untouched, 1300HomeLoan managing director John Kolenda has nevertheless told consumers they can expect banks to move out of cycle.
"Mortgage holders can expect a further lowering of interest rates by lenders out of cycle. The banks have no issues at the moment with cost of funds and we can see them cutting their rates as they aggressively compete for home finance business," he said.
Kolenda predicted that lenders would begin to make slight rate reductions of five to 10 basis points in the months ahead.
While the RBA
's inaction yesterday was widely predicted, it was met with mixed reviews from the mortgage industry.