Auswide Bank will increase variable loan interest rates following the decision on Tuesday by the Reserve Bank of
Australia (RBA) to increase the cash rate by 25 basis points to 4.10%.
From 15 June 2023, Auswide Bank’s variable interest rates on new and existing home, business and personal
loans will increase by 0.25%p.a.
Martin Barrett, Managing Director, said that market commentators had been split over whether the RBA would
increase the cash rate again this month.
“The RBA decision is being partly attributed to the Fair Work Commission’s decision last week to increase award
rates of pay by 5.75%, effective from 1 July 2023.”
He said the RBA has indicated some further tightening of monetary policy may be required to ensure that
inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation
evolve. “That may indicate further increases ahead, although the market remains mixed in its views.”
Mr. Barrett said that Auswide Bank’s customer service teams are available to support any borrowers in need.
As per the market guidance released by Auswide Bank on 26 May 2023, despite the spate of loan rate increases
over FY22/23 in response to the RBA cash rate increases, Auswide’s loan book continues to perform exceptionally
well, with arrears remaining at low levels.