Sally Tindall

to control inflation when the inflation problem now has shifted to a supply-side problem rather than a demand-driven problem.

Yes and no.

It's a bit of a game with the banks.

So they've passed on the two rate hikes we've already had this year in full to their variable borrowers, right?

That happens about 10 to 14 days after the RBA announcement, up goes the rate.

When we saw those rate hikes, the 13 rate hikes in 22, 23, what we saw back then was banks would pass it on in full to their existing customers, but then discount.

for new customers.

So there was a little bit of discounting and quite a lot of competition in the market at that point in time.

We're not seeing it this time around.

We're not seeing that new customer discount creep into the rates that we're seeing across the board.

One or two, here or there, but across the board, we're seeing just the banks pass it on in full to their variable borrowers.

More fully.

Yeah.

For savers, it's a very different story.

We are seeing banks come out and announce that

that they're passing on the rate hikes seemingly in full, particularly to those bonus saver accounts.

But then when you get into the fine print, what we find is that the rate hike is applied to the bonus rate of those savings accounts and the base rate, when you don't meet those monthly terms and conditions, those base rates aren't moving a muscle.

And certainly that's what we saw in the latest round of rate hikes in March, is that the big banks passed it on to all of their bonus saver accounts

In full, looks good.

Some of them are, you know, looking like what, they're close to 5% in many cases, those rates.