Record low in­ter­est rates take ef­fect

Port Douglas & Mossman Gazette - - FRONT PAGE -

FI­NAN­CIAL con­di­tions are im­prov­ing for home­own­ers, but wors­en­ing for Gen Y. The Septem­ber St Ge­orge-Mel­bourne In­sti­tute House­hold Fi­nan­cial Con­di­tions Re­port re­leased last week re­veals that Aus­tralian home own­ers are en­joy­ing the big­gest im­prove­ment in fi­nan­cial con­di­tions in more than a year, sig­nalling lower in­ter­est rates are now tak­ing ef­fect in the econ­omy.

The in­dex in­creased by 1.1 per cent in Septem­ber to 127.1, rep­re­sent­ing the third straight in­crease and the long­est run of im­prove­ments since De­cem­ber 2009. But while lower in­ter­est rates are spurring im­prove­ment in the fi­nan­cial con­di­tions of house­holds, Aus­tralia’s youth (aged 18-24) and se­niors (aged 65 and over) who are less likely to have a mort­gage, have seen a de­crease in their fi­nan­cial con­di­tions. The in­dex of fi­nan­cial con­di­tions for 18-24 year olds fell 21.3 per cent in Septem­ber - the big­gest fall in six years.

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