New data: Interest rates, super returns and more

Investopoly · Jul 26, 2018 · 12m

Some interesting information and data has been released this week which I would like to discuss with you.Variable mortgage rates will probably rise soonInterest rates that apply to interbank lending have increased significantly since the beginning of the year. These benchmark rates are used to set the banks borrowing costs. This benchmark rate has increased significantly compared to the RBA’s cash rate as depicted in the chart below (from Montgomery). Essentially, this means it costs more for the banks to borrow. Between approximately one quarter and one third of the banks mortgages are…