Auswide Bank : 08/12/22 Auswide Bank variable loan interest rates to increase by 0.25% following December RBA cash rate increase

8th December 2022

Auswide Bank variable loan interest rates to increase by 0.25% following December RBA cash rate increase

Auswide Bank will increase interest rates on variable loans following the Reserve Bank of Australia's (RBA) decision to increase the cash rate by 25 basis points on Tuesday.

From 15 December 2022, interest rates on new and existing variable rate home and business loans and existing variable rate personal loans will increase by 0.25%p.a.

Auswide Bank fixed interest rates, term deposit and savings account interest rates remain under review.

Martin Barrett, Auswide Bank Managing Director, said the amount of the increase was widely expected, however future increases were not as certain. The RBA has signalled a potential pause to the spate of official cash rate increases which occurred in 2022 by stating in their announcement, "the Board expects to increase interest rates further over the period ahead, but it is not on a pre-set course." Mr Barrett said, as the RBA don't meet in January, there won't be any further cash rate increases until February 2023. "That will at least give the RBA time to consider the inflation figure at that time, however some market commentators are calling out a further 0.25% increase in February for a peak in the cash rate of 3.35%."

Mr Barrett said, despite facing increased loan repayments over the course of 2022, the great majority of Auswide Bank borrowers continued to manage their loan commitments well. With the prospect of Christmas and potential impact on household budgets, our teams will continue to assist and support our customers into the new year. Mr Barrett said where a customer has an increased loan repayment resulting from the 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.

All media enquiries to:

Karyn Kelly, Head of Marketing

M: 0414 011 695

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