The RBA has left borrowers on the side line by not dropping the Cash Rate for another month.
Lenders have stated they cannot keep absorbing the higher costs of funding so are looking to move their rates up again out of cycle.
Within minutes of the RBA announcement, the Bank of Queensland increased their variable rates by 0.1% out of cycle.
This is a further blow to the already weak Australian Government as most lenders get set to move their interest rates up as most lenders only get about 30% of their funding from areas that are attributable to the Cash Rate. The costs of their other funding sources such as overseas funding and deposits have increased so they are set to pass this cost onto the consumer.
It is a great time to have your mortgage reviewed to see how much you can save by getting a better deal.

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