Interest rates

Around 2008/2009 I applied for vehicle finance when rates where at an all-time high. I chose a linked rate and it was a pleasure to see it being cut non-stop after that. At this stage what is the trajectory looking like for rates? Is linked or fixed best?
 
Galactica said:
Around 2008/2009 I applied for vehicle finance when rates where at an all-time high. I chose a linked rate and it was a pleasure to see it being cut non-stop after that. At this stage what is the trajectory looking like for rates? Is linked or fixed best?
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Same as it was in January. Rates should be going up, but SARB still has some breathing room. Low inflation for August, and US rates staying steady will delay the hikes.
 
cr@zydude said:
Same as it was in January. Rates should be going up, but SARB still has some breathing room. Low inflation for August, and US rates staying steady will delay the hikes.
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Usually we will see around 25basis point hikes per quarter I would guess, unless things go REALLY pear shaped.

At the end of the day, never forget that the bank will be offering you 2 deals that under worst case scenario for them, will end up at roughly the same profit... So unless you absolutely positively know that prime will go beyond what your fixed rate is, I'd always err on the side of saying take the linked rate.
 
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