Ask Kevin Young Episode 108 - Kevin Predicts Interest Rates

G’day,

In this week’s episode of Ask Kevin Young, I’m talking about what’s happening with current interest rates. If you believe the media, you’ll likely think that the interest rates are going up, but they’re wrong. The next move by the Reserve Bank will be going down, I predict they’ll actually be going down to about 1%.

The banks can keep up with the Reserve Bank rate cuts, they just choose not to. The banks actually choose to only pass on half of the rate cuts from the Reserve Bank. Up until the Rudd Financial Crisis the banks always passed on every rate drop. Remember we used to discuss which bank would be first to drop their rate, not would they drop their rates?

So now the question is not if the reserve bank is going to lower, but if the treasurer has got the guts to pick up the phone and make the banks pass on the cut. If you want to see how the banks are lying check out the chart pack from the reserve bank website.

Regards,

Kevin Young