Interest Rate Rise Could Tip Australia Into Recession

Thursday July 28, 2011

Aussie John calls on Reserve Bank to show restraint next week

Founder and Executive Chairman of Aussie Home Loans, Mr John Symond, today called for the Reserve Bank to not increase official interest rates next Tuesday, August 2, at its monthly meeting.

He said: "There are many reasons why the Reserve Bank should not lift rates, perhaps the most important being the fact that the non-mining economy is slowing, with retail sales and consumer confidence down.

"We are currently seeing a two speed economy and many non-mining industry sectors are suffering. As a result, one or two more rate rises could well tip Australia into recession", he added.

Mr Symond said the current debt crisis in Europe and softening economic conditions were also concerning Australians, who in response had lifted their savings rate.

"Many Australians are worried about their job security and are not spending money, while the spectre of new taxes is also hanging over them", he added.

Mr Symond suggested home owners and credit card holders should investigate their own financial situation and seek to more closely manage their mortgages and credit cards to further shore up their financial security.

"Borrowers should investigate simple measures like making fortnightly and extra payments or even refinance to a mortgage more suited to their needs and aspirations", he concluded.

Aussie's loan book is worth $40 billion and has a team of more than 750 mortgage advisers who are available 24 hours a day, seven days a week for a free consultation. Call 13 13 33 or visit one of the 140 Aussie shops around the country.

For further information please call:

Tim Allerton
City PR
(02) 8916 4848 or 0412 715 707

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