Many questioned the Labor government's decision in October to offer lenders the safety of Australia's credit rating but a new report suggests interest rates could be much higher if it had decided against allowing banks to sell covered bonds.
St. George expects uncertainty in Europe to prompt the Reserve Bank to deliver borrowers a 0.25% rate cut when it meets next in early February bringing the cash rate firmly into expansionary territory at 4%.
A surge in new home sales after the Reserve Bank's November rate cut shows that more cuts are needed to support the fragile housing market, the HIA says.
A two-punch combo of lower interest rates and rising consumer confidence means brokers could face a knockout year in 2012.
Brokers should prepare for a shift towards the certainty of fixed rates among their clients as the European debt crisis continues to bite