Auswide Bank will increase interest rates on variable loans following the Reserve Bank of Australia’s (RBA) decision on Tuesday to increase the cash rate by 25 basis points (0.25%).
From 16 March 2023, Auswide Bank’s interest rates on existing variable rate home, business and personal loans will increase by 0.25%p.a. Rates available to new borrowers will also increase by between 0.25% and 0.30%p.a - depending on the applicable LVR. Auswide Bank’s Low Rate Visa credit card will also increase by 0.25%p.a. from 1 April 2023.
Interest rates on fixed rate home loans, term deposits, savings accounts remain under review.
Martin Barrett, Managing Director said “In their commentary, the RBA Board advised the monthly CPI indicator suggests that inflation has peaked in Australia and goods price inflation is expected to moderate over the months ahead due to both global developments and softer demand in Australia. He said that while the RBA Board said they recognised that monetary policy operates with a lag and that the full effect of the cumulative increase in interest rates is yet to be felt in mortgage payments, further tightening of monetary policy will be needed to ensure that inflation returns to target. In assessing when and how much further interest rates need to increase, the RBA Board advised that they will be paying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market.”
Mr Barrett said Auswide Bank continued to support any customers in response to the ongoing increases.
“Concerns of mortgage stress are not our experience to date and we are sitting at record low arrears.
Nonetheless we remain vigilant and want to support any customers who may need support.”
Mr Barrett said where a customer has an increased loan repayment in respond to this latest increase, they will be advised by letter in advance of their next repayment due date. A customer’s applicable interest rate will also appear on their next loan statement.
