» These financial analysts said that “The Commonwealth Bank is responding to the rising cost of fixed-rate funding.” Fair enough, but let’s look at the facts.
» Since their peak on 15 June 2022 wholesale interest rates plunged by a massive 1.10% as of 1 July 2022 (equivalent to a 28% drop), to be at the same levels as they were back in April 2022.
» Back in April 2022, both the National Bank and Commonwealth Bank were happy to lend at their pre-1 July 2022 fixed interest rates, and since smaller lenders, as of 1 July 2022, have substantially lower fixed rates than these banks, one has to consider ignoring these financial analysts’ comments.
» On 4 June 2022 we predicted that 3 and 10-year government bond yields would likely peak soon and will make a substantial move lower.
» We first alerted the need to consider fixing your home loan interest rate on 15 December 2020, followed by on 28 February 2021 and again on 18 October 2021 (2022 The year of the rates shock).
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