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Brokers have backed the consensus view among economists that the official cash rate will remain at 2.5 per cent in 2014.
According to a recent poll on The Adviser, 65 per cent of respondents expect the cash rate will still be at a record-low 2.5 per cent at Christmas.
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Another 27 per cent said it would be lower, four per cent said it would be higher and four per cent said they didn’t know.
All 25 economists surveyed by comparison website finder.com.au said the Reserve Bank of Australia would leave rates unchanged at today’s monthly board meeting.
The economists were also unanimous that the next move in rates would be up, but only one said it could happen this year.
Cooper Financial Connections director Peter Cooper said the media’s obsession with interest rates sent the wrong message to borrowers.
“It’s not about cheapest rate, cheapest fee. It’s about individual circumstances,” he told The Adviser.
“You can still get the best fee and rate for your individual circumstance, but you don’t go chasing cheap rate, cheap fee at the expense of being at the wrong product at the wrong time.”
Financewerx owner Rosa Bellissimo said she has advised her clients to take advantage of low interest rates by repaying their mortgage ahead of schedule.
She added that she always warns clients that interest rates will eventually rise and so they should be careful not to over-extend themselves.
Property Prosperity director Darren Standish said the current low-interest rate environment means now is a good time for people to fix their loans.
However, he told The Adviser that he wouldn’t expect borrowers to show much interest in the sort of 20-year or 30-year fixed terms that can be found overseas.
He also said he would advise clients against fixing for so long because it would be impossible to predict what would happen so far into the future.
[Related: Nothing to fear from rising interest rates, says Shane Oliver]
