Most market commentators think the RBA is going to cut rates again, either next week, at the April Board meeting, or the following one in May.
It’s a view shared by Australian borrowers, according Jessica Darnborough of Mortgage Choice.
Darnborough shared the latest monthly loan origination data from Mortgage Choice’s Australia-wide network with Business Insider today.
“Over the last month, fixed rate demand hit a two-year low and we are expecting demand to fall further still as speculation mounts that the RBA will cut rates again in either the April or May Board meeting,” she said.
The data certainly supports the argument.
Behaviourally, Australians borrow less fixed rate loans when they are not concerned about the chances of an RBA rate hike and when they think rates will fall.
This data is as clear a signal as you get that Australian borrowers are expecting the RBA to cut rates.