Interest rate update
We’re making changes to our lending interest rates effective 23 March 2023. Home, residential-investment and commercial loan variable interest rates will increase by 25 basis points (0.25%p.a.) for existing borrowers.
Customers will be notified of their new loan repayments by letter.
Uncertainty to continue
The decision to increase lending rates is in response to the RBA increasing the cash rate at its March meeting but we consider several factors including balancing the interests of both our borrowers and depositors and ensuring the Bank’s financial sustainability.
Bank of us CEO, Paul Ranson said, “The RBA is flagging that it expects interest rates to go higher. How high and for how long is highly uncertain, with signs of moderating inflation but this is still above the RBA’s preferred band of 2% to 3%.”
“The RBA is saying that it will make its decisions based on developments in the global economy, trends in household spending and the outlook for inflation and the labour market.”
Supporting our savers
Bank of us recently lifted interest rates on savings accounts. “As the only 100% Tasmanian owned bank, we are committed to providing Tasmanians with the best possible products and services and increasing our savings interest rates is just one of the ways in which we can help Tasmanians to build a more secure and prosperous future."
A local perspective
Bank of us has maintained strong figures in lending, indicating the resilience of the Tasmanian economy.
“From the perspective of Bank of us, our loan book continues to perform well and we are not seeing any significant changes in customer behaviour that is indicating an emerging problem”.
“However, we know that the rising cost of living along with higher loan repayments are impacting household budgets and is resulting in some customers having to either utilise savings or tighten their spending to make ends meet.”
“This impact is also apparent in a reduction of total demand for housing finance and lower deposit growth for the banking sector”.
Getting in touch
We understand that with the ongoing changes to interest rates customers might need some support in managing their money.
"We encourage anyone with questions about the changes or anyone who might be finding it difficult to manage their loan to get in touch with us so we can help them to get back on track.”
Call us on 1300 306 716 or visit one of our retail stores.
Check your repayments: https://bankofus.com.au/home-l...
Tasmania's only customer owned bank, Bank of us has seven Retail Stores state-wide, 33,000 customers and $1.45 billion in assets.
Contact: Fiona Weller, Communications Specialist, 0421 063 784
