Good and Bad News from the OECD

The Australian economy remains relatively strong, but the trend remains up for interest rates for Medical Equipment Finance.  The Good News is that the OECD predicts that Australian GDP will grow by 3.2% this year and 3.6% in 2011.  That compares well against the projected OECD averages of 2.7% and 2.8%, respectively.

However, they also predict that the RBA will raise the cash rate to 5.7% by June of next year.  The 1.2% increase will likely mean standard variable mortgage rates of 8.6%.  That makes the current five-year fixed rates in the mid-sevens fairly attractive, unless your broker can provide you a beefy discount to the standard variable rate.

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