Auswide Bank responds to RBA cash rate increase
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 50 basis points.
From 22 June 2022, Auswide Bank will increase variable interest rates on new and existing home and business loans by 0.50%p.a.
Auswide has resolved not to increase its Low Rate Visa Credit Card retaining the current rate of 8.30% on both purchases and cash advances.
Selected term deposit interest rates are also being increased from Tuesday 14 June 2022, and Auswide will continue to monitor term deposit and savings account interest rates over coming weeks.
Managing Director Martin Barrett said Auswide Bank was prudently managing interest rates in response to the official increases to the cash rate, and while not the only factor taken into account in setting loan interest rates, the RBA cash rate and market expectations had a considerable bearing on funding costs.
“As I stated in May when the last cash rate increase occurred, our loan customers have benefited from record low interest rates over the last few years and many are now in advance on their loan payments. New loan applicants are always assessed on a higher sensitivity rate than our advertised interest rates, so, while we recognise the impact of higher repayments on household budgets, we know that our newer borrowers should have capacity to manage an increased commitment. We are ready to proactively work with any customer who may require help in making their payments.”
Where customers have a new repayment commitment they will be advised by letter in advance of the next repayment due date. A customer’s applicable interest rate will also appear on their next loan statement received after 22 June 2022.