What’s that all about? The cash rate remains steady but our bank interest rates rise??
The cash rate remains steady but our bank interest rate rises???
Once upon a time when the cash rate moved (up or down), most lenders would typically move their interest rate in alignment with the cash rate change.
Have you noticed that when the cash rate moves up the lenders are quick to pounce on an increase and pass these increases on to us – the consumer – immediately?
AND have you noticed that when the cash rate goes down it can take at least a month for them to respond and for them to pass on the savings?
If you have been paying attention over the last few weeks, the major banks have increased their rates independently of the Reserve Bank’s monthly decision to keep the cash rate unchanged.
Not only are they penalising investors (those who provide public housing), but now owner occupiers are taking a hit as well. Even small business variable loans are being increased.
We hear all the time that the banks are hiking up their rates in response to increased funding costs (which are true – but that’s another story), however it is still a hard pill to swallow when they announce their multi-million dollar profits each year.
So what can YOU do as a consumer of lending product?
PAY ATTENTION!
