Hey Greg Hearn the Financial Physicist it’s the 3rd of February my first video blog for the year down here at Bar Beach as you can see it is going off over my shoulder way too big for me anyway I just want to touch base and go okay interest rate where are we at the meeting I’ve got a dog who’s licking my toes now that’s funny um the meeting for The Reserve Bank is next Tuesday they will now put it on hold as of last Tuesday I was a 50/50 call as to whether they would hold rates because there was a lot of people overseas and what appeared to be a lot of spending at Christmas but it seems from the numbers that have come out and a bit of confirmation from the big banks that that’s not going to be the case in fact the big banks were saying uh through the week earlier in the week um that uh there would be no more rate rises which I didn’t quite agree with at that time but they know more than me uh and the um rate reductions would start October November CommBank came out yesterday and said the Reserve Bank went too far which is exactly what I said it probably went 2 rate rises too far and there’ll be definitely no rate rise on Tuesday we’re done with rate rises and we will have three rate rate reductions this year so that’ll be interesting to see and I thought we should have we shouldn’t have gone the last two and we should have been cutting from about June July they’re now saying September October November or October November December so it’ll be interesting to see anyway that’s it for me peace out
Financial News
Interview: Challenges of Refinancing Amid Ongoing Pandemic Effects
In a recent interview, Greg describes the challenges of refinancing in the face of ongoing pandemic-related disruptions were discussed. Refinancing has become more difficult due to stringent serviceability criteria and the lingering effects of the pandemic. Many borrowers are finding it hard to switch to new loans due to serviceability issues. Greg explains that while some borrowers meet the requirements, a significant portion struggles to do so because of the prolonged disruptions caused by the pandemic.
The interview highlighted that as borrowers struggle to meet the stringent criteria, some lenders are reducing buffers for specific borrower categories. ANZ is the only major bank not adjusting its serviceability buffers, while others like Westpac, NAB, and CBA have modified their requirements, especially for borrowers with sound credit histories.
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