Finance & Fury Podcast

Welcome to Say What Wednesdays – Where we answer your questions about personal finance and the economy! This week’s question comes from Michael. His question related to interest rates, and to not give away his details I’ll paraphrase: “With interest rates at the moment being currently fairly low on my personal home, do you think it is a good time to lock in a fixed rate, or should I keep it variable?  I can’t give a yes or no answer on this one without knowing more about your personal situation, but can speak generally. To answer this, we will run through three players in the game; RBA Cash rate Interest rates of the banks Deposit rates of the banks All three of these are related RBA cash rate is the core, which then leads on to what banks lend out at, and then also what they offer on deposits placed with the bank. RBA Cash rate – what the RBA set as monetary policy through OMO and the supply of money We have been talking about this in recent Furious Friday episodes. We are coming up to 2 years of having t