Aussie Personal Loans News

Wed, 2 May 2007
Interest rates on hold: reprieve for homeowners
In a boon for the nation's mortgage belt, the Reserve Bank decided at its quarterly meeting on May 1 to leave the official cash rate unchanged at 6.25 per cent. The Reserve Bank's decision followed the publication of a much lower than expected March-quarter consumer price index, which showed inflation rose just 0.1 per cent for the quarter and 2.4 per cent for the year. This was well within the Reserve Bank’s target of 2-3 per cent. In a rare show of consensus, many economic forecasters are now predicting a further easing in inflation and most believe interest rates will stay on hold for the rest of 2007, particularly given the impending federal elections.

Wed, 15 August 2007
Interest Rates Will Rise
CBA CEO Ralph Norris conceded that there may be an increase in interest rates as a result of the US subprime mortgage crisis for all Australian lenders, or the strength of the local economy. Increases in home loan rates could flow through from the on-going turmoil in credit markets caused by the subprime mortgage funding crisis in the US.

Tue, 04 September 2007
Australians slammed by rising interest rates
HOME lending costs are inching towards 10 per cent after nine official interest rate rises in five years. Households are feeling the pinch, and the hurt is not over yet with the threat of more rate rises. While analysts do not expect any upward movement in interest rates after the central bank meets today for its monthly meeting, strong economic growth at home is countering global financial market volatility and could push the central bank to raise interest rates later this year, analysts say.

Thu, 18 October 2007
Bad debts hit finance company profits
A steep rise in bad debts has kept profits flat for Australia's finance companies, but the rest of the lending market shouldn't be too alarmed just yet, auditor KPMG says.

A KPMG study of eight finance companies found their combined profits before one-offs fell by 2.5 per cent last financial year to $401.9 million. This was despite a seven per cent rise in their combined assets and tight cost control.

Total bad and doubtful debt expenses jumped by a remarkable 32 per cent.

KPMG said the rise should be seen in the context of growing loan volumes - logic says the more you lend, the higher the risk of default.

Mon, 07 January 2008
Private lending set to push up rates
A surprise jump in private sector borrowing has sparked predictions of another interest rate rise in February.

Citigroup director of economics Stephen Halmarick said the private sector credit data added to the case for another interest rate hike in February.

"In light of the credit concerns in recent months, today's data highlights that credit is still accessible and is clearly still not considered expensive by borrowers, adding further justification for the November rate hike," he said.



Sun, 25 May 2008
World credit crunch easing
Treasury Secretary Ken Henry says the credit crisis has reduced competition in financial markets but there are signs the situation is improving.

"The global financial market turmoil, which followed the sub-prime crisis in the United States, has had an impact on competition in financial markets globally," Dr Henry told an Australian Business Economists' function in Sydney.

Dr Henry said there were signs the global credit crunch was easing but expected the problem to remain for a while yet.

"I do not expect these circumstances to be sustained, although we could be living with the adjustment process for some period of time," Dr Henry said.

"There is, of course, also the risk for further nasty surprises as that particular crisis, or shock to the global financial system, plays itself out around the world.

"But my own view is that we will see a renewed interest at some stage in securitised products and with that there will be a return of a level of competition that many of us have gotten quite used to."

SOURCE: The Age

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