Will other central banks follow?

October 7, 2009

 Elliott Wave International published the following update:

On October 6, the Reserve Bank of Australia surprised the global financial community with a .25% interest rate hike, bumping it up to 3.25%.

Almost no one expected a major central bank to raise rates amidst the ongoing financial crisis. That’s why the RBA’s decision “was largely interpreted as a sign that the Australian central bank is confident in an economic recovery.” (RTT news)

Read the full article here.

Interest rates on home mortgages are affected by bond yields. Charting central bank’s rates on T-bills and bond yields will help confirm the direction on mortgage rates, going up or down.

“The rate increase in Australia spurred speculation the global economic recovery will accelerate, encouraging investors to abandon the security of the U.S. dollar for higher-yielding assets”.

How long low interest rates can be maintained?

Rates update

Shortly after Bank of Montreal lowered their variable rate mortgage to Prime, Scotiabank followed and become the 2nd major bank to announce prime rate on their variable-rate mortgage. Other mortgage lenders that offer Prime rate variable mortgages are CoastCapital, Firstline, First National, Home Trust, Merix and TMG.

RBC, CIBC, and TD are still holding on to their  variable mortgages at prime plus.

Kindly contact me (Elsie Tse) at 604-716-3369 or Email Me 

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