Not through the roof, but John Symond thinks banks might raise rates

Not through the roof, but John Symond thinks banks might raise rates
Not through the roof, but John Symond thinks banks might raise rates

John Symond, executive chairman of Aussie Home Loans, says the RBA was unlikely to raise rates today particularly given the volatility of global equity markets.

I think central banks around the world will be very very careful in what they do with interest rates," he told Ross Greenwood's Money News radio program.

Ross Greenwood asked him whether the backdrop for banks to have more capital and restrict lending could mean higher rates, John Symond replied by saying that that's been the talk for probably the past three or four months.

"It would not surprise me if over the next few months that the banks creep up their lending rates, but I don't think they'll go through the roof."

"They may go up another 0.1 or 0.15 but at the moment I think consumers want every bit of help they can get to give them that bit of confidence."

The impact the RBA and the banking regulators limit in the growth the number of Investment Property loans had been significant when it came to on the hotter markets in Melbourne and Sydney last year.

"It has had a huge impact," Symond noted.

"I can tell you just from our own business that the amount of loans to investors has fallen significantly and has dampened the enthusiasm for investors to get in."

"It's not like investors are lining up and saying will you lend us some money, they've tended to fall away."

"The APRA moves to curtail investor lending has certainly been effective."

Ross Greenwood asked John Symond's point of view, despite his number of loans decreasing, whether he felt if it is a good thing so the prices didn't race out of control.

"I think all in all the market has accepted it in a pretty positive way and prices are continuing is levelling off," he said.

"I'm not one to not want price increases to be as sharp as they have been."

"The property market is levelling out and becoming a more healthy market."

The full interview can be heard here.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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