Mark Burris has predicted that Australia is unlikely to see an interest rate cut until at least the middle of next year.
The Yellow Brick Road CEO told Today that there is a huge amount of tension in the market at the moment and suggested that a GST hike might be a better alternative to another interest rate hike.
“I’m going to sound a bit disrespectful, but the RBA needs to get off its high horse and start looking at alternatives to stop people spending too much,” he said.
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“I think like the US, we have two competing economies and the US is six months ahead of us, so I think that will continue and I think we certainly won’t be looking at rate cuts until the middle of next year.”
Mark said concerned borrowers need to make sure they are getting the lowest interest rate in the market and perhaps consider changing it from base rate to interest-only for a period of time.
“If you are facing real hardship, contact your lender and make sure you ask for a grace period, such as a three-month period, etc.,” he said.
But while things still look gray in the long term, Mark said he believes interest rates will remain steady for at least the next month.
“Tomorrow we have unemployment numbers and on July 31 we have inflation numbers, so there are a lot of people betting in the market that there will be a rate hike in early August this year,” he said.
“So this is really concerning, but my hunch at the moment, and it’s nothing more than a hunch, our analysis shows that the Reserve Bank will not raise interest rates because by raising rates, they won’t be able to control these things, these rates that are going up and they’re useless and they’re not having any effect.”
Watch the full conversation with Mark Boris in the video above.
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