Why do interest rates always seem to go up once the banks have some sort of meeting. (In Australia anyway.)

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Why do interest rates always seem to go up once the banks have some sort of meeting. (In Australia anyway.)

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Anonymous 0 Comments

It isn’t ‘the banks’, it is the Reserve Bank, a quasi-independant government department. They create and lend money to the other banks at a fixed rate, as well as making other changes.

Every month they meet and decide on what rate they should be charging. They are the major source of money to lend – for home mortgages, but mostly for business finance – so the rate at which you can get money from the federal reserve sets the rate elsewhere.

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