Will Interest Rates increase this year ?

Will Interest Rates increase this year ?

There is currently a lot of speculation from Economic Commentators
 in Australia and New Zealand as to the likelihood of an Interest Rate rise this year.
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The issue for Householders is not to get caught up in speculating about the possibility of an Interest Rate rise, but to prepare for its inevitability.

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1) Will you be able to afford your Mortgage payment should Interest Rates rise this year ?

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2) Have you factored in the possibility of an Interest Rate rise

 into your Investment Property Portfolio payments ?

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In a recent article in the Sydney Morning Herald entitled ,

 "Rising interest rate predictions stoke fears for Australia's recovery",

it states, 'The expectations of rising interest rates in developed countries after years of ultra-loose monetary policy has sparked concerns that a possible stifling of growth in emerging markets could slow Australia' non-mining economic recovery. Forecasts of  rate hikes in United States,

the United Kingdom and Sweden this year have risen in recent months as their economies recover following the financial crisis.'

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3) Why should you create a Budget with your Accountant
    which factors in a potential Interest Rate rise ?
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    Interest Rates in Australia , New Zealand and the UK have been at record lows
    for some time, and there are currently several Economic commentators suggesting
    that Interest Rates will begin to rise again later this year .
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The SMH article continues,

 "Markets have also started to price in a small chance of an increase in the cash rate by the Reserve Bank of Australia within the next 12 months from its record-low of 2.5 per cent."

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Sydney Morning Herald Article

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Rising Interest Rates rise stoke fears of Australia's recovery

 

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Phone Craig Holme Consulting   0423 585 932