Perry Finance

Some mortgage brokers believe if the next move in interest rates is upward, it may actually lead to more business for them.

The Reserve Bank has followed through on its promise of stability, leaving interest rates unchanged this month at 2.5 per cent.

While interest rates are expected to be stable in the near-term, many economists believe the next time they do move, they will move upwards.

Despite the RBA having just announced interest rates to remain unchanged this month, variable rate home loans are growing in popularity again as banks offer discounts to lure customers.

According to the RBA interest rates are set to remain on hold primarily because of the uncertainty in the current economic climate.

Interest rates have again remained steady at the record low of 2.5 per cent – the same rate that has been since August last year.

The Organisation for Economic Cooperation and Development (OECD) has recommended to the Reserve Bank that they lift interest rates early in 2015.

After much speculation over the last couple of months, with plenty of people split over which way interest rates would go next, the Reserve Bank last night dropped them a quarter of a per cent to a new record low of 2.25 per cent.

Young people that are doing well financially are benefitting most from the sustained period of low interest rates, and it’s largely at the expense of older Australians.

The RBA looks set to cut rates again in April and even further as the year progresses to a level below 2 per cent.