GDP figures for the March quarter released on Wednesday demonstrate a soft economy, with the longest per-capita recession on record, and meagre household savings to boot.
Retail trade is also very soft, with consumers largely pulling back on their discretionary spending.
The only area of spending seemingly increasing is services - that pesky stuff a lot of people have no choice but to pay. This is leading the charge in a shock rebound in the inflation figures.
That said, as they say, the best form of welfare is a job, and the job market, while softening, remains very robust with an unemployment rate of just 4.1%.
At its last board meeting, the RBA monetary policy team tabled rate hike discussion once again, noting a slight pickup in inflation.
While it wasn't enough to move the needle, on Wednesday RBA governor Michelle Bullock said, if inflation "starts to go up again or it's much stickier than we think, we're not getting it down, then we won't hesitate to move and raise interest rates again".
That hasn't deterred the lending molasses however, with the value of lending picking up substantially in April, and average loan sizes skyrocketing.
And with all that money borrowed, best find a competitive deal then...
Bank First edges higher on variable rates
Victorian Teachers Limited, trading as Bank First and the 10th-largest customer owned bank in terms of assets, increased rates on some variable rate mortgages by 10 to 15 basis points.
Key to the portfolio include:
- OO Basic Home Loan P&I 90%: 10 basis points up to 6.49% p.a. (6.52% p.a. comparison rate*)
- Inv Basic Home Loan P&I 90%: 10 basis points up to 6.89% p.a. (6.92% p.a. comparison rate*)
Other types of home loans, including offset, construction, package, and interest-only loans, were increased by similar margins.
MyState Bank makes a small adjustment
Just one change from the Tasmanian-based bank this week:
- OO Basic Variable 70-80%: 5 basis point increase to 6.19% p.a. (6.22% p.a. comparison rate*)
IMB increases on OO, while decreasing for investors
The eighth-largest customer-owned bank increased rates on some owner occupier home loans by 5 basis points, while decreasing on a host of investment home loans by up to 15 basis points.
Some key to the portfolio are:
- OO Essentials P&I 80%: 5 basis point increase to 6.24% p.a. (6.35% p.a. comparison rate*)
- Inv Essentials P&I 90%: 15 basis point decrease to 6.44% p.a. (6.61% p.a. comparison rate*)
IMB's 'Essentials' line comes with an offset account, while its 'Budget' line does not.
Image by Freepik
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