▲ 12 ▼ RBA's decision on interest rates a choice between two evils: recession or inflation (www.abc.net.au) submitted 6 months ago by zero_gravitas@aussie.zone to c/ausfinance@aussie.zone 14 comments fedilink hide all child comments
[–] ljoe@aussie.zone 2 points 6 months ago (2 children) There needs to be more than one interest rate. permalink fedilink source hideshow 2 child comments replies: [–] Zagorath 3 points 6 months ago There already is. The RBA only sets the "cash rate". Your mortgage isn't at the cash rate, and neither are the loans businesses take out. They're influenced by it, and a lot of banks will essentially have their rates rise and fall in lockstep with it, especially for regular people who don't have the negotiating power to lock in special agreements, but they don't have to. permalink fedilink source parent [–] zero_gravitas@aussie.zone [S] 2 points 6 months ago That's kind of the case in the US. They don't have variable-rate home loans, so only business borrowing is affected by the US Federal Reserve's interest rate. permalink fedilink source parent
[–] Zagorath 3 points 6 months ago There already is. The RBA only sets the "cash rate". Your mortgage isn't at the cash rate, and neither are the loans businesses take out. They're influenced by it, and a lot of banks will essentially have their rates rise and fall in lockstep with it, especially for regular people who don't have the negotiating power to lock in special agreements, but they don't have to. permalink fedilink source parent
[–] zero_gravitas@aussie.zone [S] 2 points 6 months ago That's kind of the case in the US. They don't have variable-rate home loans, so only business borrowing is affected by the US Federal Reserve's interest rate. permalink fedilink source parent