02 Feb Australian Banks Out of Step with RBA
It has become quite apparent the major banks have an issue with the cost of funding, as bank funding continues to rise*.
Market chatter suggests that when the Reserve Bank of Australia “RBA” meets on Tuesday 7 February, the cash rate will be reduced by another 0.25 points to 4.00%.
Now we hear that the banks are suggesting that, due to the increase in the cost of THEIR funds, they may not reduce interest rates in delayed unison with the RBA.
Instead, we hear that they are looking to set their interest rates independently of the RBA!
This makes current fixed interest rates look very attractive right now.
From a personal and business point of view fixed interest rates are generally below the current variable interest rates, so it may be worthwhile considering a fixed interest rate at the moment.
We are also finding that many small business owners who have been with their bank for some time have experienced an upward creep in their interest rate margin. This means that a fresh look at your current loan facilities could save you thousands a year.
A simple phone call to Finance For Life, on 1300 88 95 11, will give us a general idea of your financial circumstances so that we can suggest what is possible to improve your current financial position.