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A rate rise is not expected to have a significant impact on mortgage lending, Stephen Halmarick Citi director co-head of economics and market analysis told Mortgage Busniess today.
The September quarter’s CPI figures indicated a 0.7 per cent rise in headline inflation for an annual rate of 1.9 per cent – fuelling speculation that a rate rise is on the cards for November.
“Should the RBA elect to lift rates the pace of mortgage lending will slow down, but lending institutions will ultimately factor this into their plans – and things will go on as usual,” said Halmarick.
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