Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
Powered by MOMENTUM MEDIA

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Banks may increase variable rates independent of RBA

Staff Reporter 1 minute read

Variable interest rates may rise by 0.15 per cent before the RBA lifts its cash rate, a new study has warned.

According to the financial comparison website RateCity, variable rates are expected to rise in the near future as the costs of funding continue to increase.

“The best indicator of what rate banks are paying to borrow their funds is the 90-day Bank Bill Swap Rate, and this has risen from 3.36 percent to 3.45 percent in the last couple of weeks alone,” RateCity’s chief executive officer Damian Smith said.

The big four banks have not moved many of their key variable rates for up to seven months, indicating the time for a rate rise is now.

“If the big four banks lift their rates, this will impact about 90 percent of Australians with a variable home loan,” Mr Smith said.

RateCity expects the current average standard variable interest rate of 5.5 percent per annum to rise to 5.65 percent before the end of the year.

Banks may increase variable rates independent of RBA
default
TheAdviser logo
default

 

more from the adviser
regulation rules AFCA amends complaints rules following court case

The financial services ombudsman has changed its rules after the ...

meeting top view ta 62c1 Half of home owners wary of bank refinance advice

One in two borrowers does not believe banks always have their bes...

house sold Hot Property: The biggest property headlines from the week 18-22 January

Here’s the weekly round-up of the biggest news stories from acr...

FROM THE WEB