We caught up with Evan Lucas (Chief Market Strategist at Investsmart) to talk about recent interest rate cuts in Australia. Rates are now at their lowest level in history, but will they continue to fall? That's the question we asked Evan and his prediction for mortgage costs in 2020.
Domenic and Evan ponder whether the current cash rate drop was a prudent move and the corresponding changes that will occur in the market. They also discuss whether the drop in the cash rate was a right step towards full employment and the ways that this will affect the market.
The interview questions:
Why have interest rates dropped?
Do you think this is a prudent move? Do you think you'll see changes in the market? Is this a right step towards full employment and how do you see this affecting the market?
Do you think movement in the property market will have an effect on the rest of the economy/market?
Do you see the majors following suit (following the RBA) or prudence on their behalf? Which majors do you think will move and in what order?
If you were a punter, would you be looking to fixer rates or variable rates and what comments do you have for the average punter with debt and is looking to refine/do something with their mortgage?
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