Banks responses to November RBA .25% rate rise- The RBA has now increased rates 13 times since starting this increasing rate cycle which means anyone with an average Home Loan of say $750,000 is now paying a minimum of $1,815 per month MORE than they were less than 1.5yrs ago. Business borrowers are even worse as their rates have risen even higher than Home Lending. Almost all banks have increased their interest rates by MORE than the RBA increases over the 13 changes. Worst still, there is talk of more rate rises possible. Bank announcements to date have all passed on the .25% rise in full but there are still around 50% of banks yet to announce their reaction. It is really time for everyone to review their cashflows and make sure you are not exceeding your income(business and personally). Create an honest cashflow budget(personal and business), cut back where needed and use interest saving features like offset accounts/special repayments to help lower overall interest costs. Here’s a great article from the Guardian about the rate rises-
Banks responses
