Following a four month pause, the Reserve Bank of Australia met yesterday and decided to increase the official cash rate for the 13th time since May last year.
The 25 basis point increase brings the cash rate to a 12 year high of 4.35%.
Following the RBA move, Auswide Bank will increase loan interest rates by 25 basis points effective from Tuesday 14 November 2023. The increase will apply to home, business and personal loans for existing customers and to most new fixed rate home and business loans. Auswide Bank issued credit cards will also increase by 0.25% from 1 December 2023.
Martin Barrett, Managing Director, said market analysts and economists had largely predicted the increase based on the latest inflation figures.
“The RBA is trying to ensure inflation falls back inside its 2-3% target by the end of 2025. Recent commentary from the new RBA governor Michele Bullock had indicated the RBA would have low tolerance if inflation differed from the forecast - which it has.”
Mr Barrett said Auswide Bank’s customer service teams are available to support any borrowers experiencing difficulties in meeting their increased loan repayments.
