1 00:00:02,720 --> 00:00:05,000 Speaker 1: My name is Lily Madden and I'm a proud Arunda 2 00:00:05,240 --> 00:00:10,040 Speaker 1: Bungelung Calcuttin woman from Gadighl Country. The Daily oz acknowledges 3 00:00:10,119 --> 00:00:12,280 Speaker 1: that this podcast is recorded on the lands of the 4 00:00:12,320 --> 00:00:15,840 Speaker 1: Gadighl people and pays respect to all Aboriginal and Torres 5 00:00:15,880 --> 00:00:18,799 Speaker 1: Strait Island and nations. We pay our respects to the 6 00:00:18,800 --> 00:00:21,599 Speaker 1: first peoples of these countries, both past and present. 7 00:00:27,560 --> 00:00:29,960 Speaker 2: Good morning and welcome to the Daily os and Happy 8 00:00:29,960 --> 00:00:32,000 Speaker 2: Friday today, the tenth of February. 9 00:00:32,080 --> 00:00:33,360 Speaker 3: I'm Zara, I'm Sam. 10 00:00:33,520 --> 00:00:35,440 Speaker 4: It might be a new year, but it. 11 00:00:35,479 --> 00:00:38,559 Speaker 2: Is still the same Reserve Bank, and this week they 12 00:00:38,640 --> 00:00:41,480 Speaker 2: raise the cash rate to its highest levels since September 13 00:00:41,520 --> 00:00:46,320 Speaker 2: twenty twelve, in its ninth consecutive increase. Now it's fair 14 00:00:46,320 --> 00:00:49,040 Speaker 2: to say we've spoken about this a bunch on the podcast, 15 00:00:49,240 --> 00:00:52,120 Speaker 2: but with people really starting to feel the pressure of 16 00:00:52,159 --> 00:00:54,120 Speaker 2: these increases, we thought it'd be. 17 00:00:54,160 --> 00:00:55,800 Speaker 4: A good time to take another look. 18 00:00:56,400 --> 00:00:58,400 Speaker 2: So Tom's going to join me in the deep dive 19 00:00:58,520 --> 00:01:01,800 Speaker 2: to explain exactly what these increases mean for you in 20 00:01:02,000 --> 00:01:05,000 Speaker 2: your life, whether you're a renter, whether you're saving, have 21 00:01:05,080 --> 00:01:08,399 Speaker 2: a mortgage or hoping to get one. Before we get 22 00:01:08,440 --> 00:01:11,240 Speaker 2: to that, though Sam there was a big resignation yesterday 23 00:01:11,280 --> 00:01:11,840 Speaker 2: in parliament. 24 00:01:17,120 --> 00:01:21,240 Speaker 3: That's right. Former Cabinet Minister Alan Tudge retired from politics yesterday. 25 00:01:21,360 --> 00:01:24,600 Speaker 3: He held multiple portfolios while in government, including as the 26 00:01:24,600 --> 00:01:27,720 Speaker 3: Minister for Education. He was also plagued by scandal in 27 00:01:27,760 --> 00:01:30,920 Speaker 3: his final years in parliament, including accusations of abuse by 28 00:01:30,959 --> 00:01:34,560 Speaker 3: former staffer Rachelle Miller. A by election in Toug's electorate 29 00:01:34,600 --> 00:01:36,880 Speaker 3: of Aston in Victoria will now take place. The big 30 00:01:37,000 --> 00:01:39,480 Speaker 3: rumor was that Josh Fridenberg was going to run in 31 00:01:39,520 --> 00:01:42,560 Speaker 3: that seat. He has since ruled that out. 32 00:01:43,680 --> 00:01:47,080 Speaker 2: Health professionals living and working in remote or rural areas 33 00:01:47,080 --> 00:01:50,120 Speaker 2: of Australia could have their help student debts wiped or 34 00:01:50,160 --> 00:01:53,800 Speaker 2: reduced under new legislation that passed federal Parliament yesterday. The 35 00:01:53,840 --> 00:01:57,040 Speaker 2: government estimates the program could save doctors an average of 36 00:01:57,080 --> 00:02:00,840 Speaker 2: seventy thousand dollars and nurses an average of twenty thousand dollars. 37 00:02:02,920 --> 00:02:05,800 Speaker 3: A Sydney man has been the first confirmed Australian killed 38 00:02:05,800 --> 00:02:09,480 Speaker 3: following the earthquake in Turkia and Syria. Can Phali was 39 00:02:09,560 --> 00:02:12,520 Speaker 3: visiting family in Turkio when the seven point eight magnitude 40 00:02:12,560 --> 00:02:15,320 Speaker 3: earthquake hit and was found by his family who traveled 41 00:02:15,320 --> 00:02:17,920 Speaker 3: to the site to search for him. 42 00:02:18,200 --> 00:02:18,960 Speaker 4: And the good news. 43 00:02:19,120 --> 00:02:22,920 Speaker 2: Australian Jack Robinson has become the top ranked men's surfer 44 00:02:22,919 --> 00:02:25,560 Speaker 2: in the world after taking out the first World Surf 45 00:02:25,639 --> 00:02:30,240 Speaker 2: League event of the year. Robinson beat Italian Leonardo Fivoranti 46 00:02:30,280 --> 00:02:33,160 Speaker 2: in the final of the Billbong Pro Pipeline in Hawaii, 47 00:02:33,200 --> 00:02:39,600 Speaker 2: which put him in first place on the WSL rankings. 48 00:02:40,840 --> 00:02:42,200 Speaker 4: Tom, Welcome back to the pod. 49 00:02:42,280 --> 00:02:43,160 Speaker 5: Would to be here, Sarah. 50 00:02:43,440 --> 00:02:46,400 Speaker 2: Now we're talking about your favorite topic, which is interest rates, 51 00:02:46,480 --> 00:02:49,880 Speaker 2: and that is because the Reserve Bank of Australia, which 52 00:02:49,880 --> 00:02:52,839 Speaker 2: we call the RBA, increased the cash rate from three 53 00:02:52,840 --> 00:02:55,360 Speaker 2: point one percent to three point three five percent. That 54 00:02:55,440 --> 00:02:58,360 Speaker 2: was earlier this week. That was the ninth consecutive rise 55 00:02:58,400 --> 00:03:01,040 Speaker 2: that we've seen. And I think that often we talk 56 00:03:01,040 --> 00:03:03,840 Speaker 2: about these numbers in an abstract sense. We report on them, 57 00:03:03,960 --> 00:03:07,080 Speaker 2: but it's pretty difficult to ground them in our realities. 58 00:03:07,200 --> 00:03:09,640 Speaker 2: So can you take us back to the basics. What 59 00:03:09,760 --> 00:03:10,880 Speaker 2: actually is an interest rate? 60 00:03:11,480 --> 00:03:14,520 Speaker 5: Yes, interest rates, our old friends, they're back again in 61 00:03:14,560 --> 00:03:17,760 Speaker 5: twenty twenty three. To understand interest rates, Sarah, I'll give 62 00:03:17,800 --> 00:03:20,440 Speaker 5: the really quick crash course explanation just to get us 63 00:03:20,440 --> 00:03:23,160 Speaker 5: back up to speed. We've got to understand the cost 64 00:03:23,240 --> 00:03:25,960 Speaker 5: of living crisis. First of all, prices are going up. 65 00:03:26,000 --> 00:03:29,040 Speaker 5: They've been going up for some time. Interest rates are 66 00:03:29,080 --> 00:03:32,160 Speaker 5: the best answer we have to try and fight that problem, 67 00:03:32,840 --> 00:03:36,600 Speaker 5: and they really work by essentially making it more expensive 68 00:03:36,640 --> 00:03:39,160 Speaker 5: for us to spend our money. You want to borrow money, 69 00:03:39,200 --> 00:03:42,360 Speaker 5: interest rates make it more expensive. You want to save money, 70 00:03:42,480 --> 00:03:45,440 Speaker 5: interest rates, in theory, should make it more attractive to 71 00:03:45,480 --> 00:03:47,720 Speaker 5: do that. The idea is the Reserve Bank does this. 72 00:03:48,680 --> 00:03:51,720 Speaker 5: They do it by charging banks interest and they hope 73 00:03:51,720 --> 00:03:53,640 Speaker 5: the banks pass it on to us. The idea is 74 00:03:54,400 --> 00:03:58,160 Speaker 5: less money circulating around the economy, less pressure on prices, 75 00:03:58,160 --> 00:03:59,680 Speaker 5: and we might be able to address that cost of 76 00:03:59,720 --> 00:04:03,120 Speaker 5: living crunch. So that's really the context we're operating in. 77 00:04:03,360 --> 00:04:05,040 Speaker 5: And as you say, we're up to nine in a 78 00:04:05,120 --> 00:04:07,680 Speaker 5: row now, and unfortunately, the message from the Reserve Bank 79 00:04:07,720 --> 00:04:09,120 Speaker 5: this week was that we are not at the end 80 00:04:09,120 --> 00:04:10,920 Speaker 5: of the line yet. They expect a couple more interest 81 00:04:11,000 --> 00:04:13,800 Speaker 5: rate rises to come before we might be able to 82 00:04:13,840 --> 00:04:15,880 Speaker 5: see the back of this cost of living problem. 83 00:04:16,000 --> 00:04:19,480 Speaker 2: Okay, so we're all feeling the cost of living crisis. 84 00:04:19,600 --> 00:04:22,159 Speaker 2: You go to the grocery store, everything is more expensive, 85 00:04:22,279 --> 00:04:26,440 Speaker 2: inflation is rising, what does consecutive interest rates actually mean 86 00:04:26,560 --> 00:04:28,120 Speaker 2: for us in that context? 87 00:04:28,600 --> 00:04:30,359 Speaker 5: Yeah, So there are a few different ways that we 88 00:04:30,400 --> 00:04:35,479 Speaker 5: can look at this. Firstly, hopefully, eventually soon these interest 89 00:04:35,520 --> 00:04:37,960 Speaker 5: rates will help to fix that cost of living problem 90 00:04:38,000 --> 00:04:40,000 Speaker 5: that we're all grappling with. So, you know, obviously that's 91 00:04:40,000 --> 00:04:42,039 Speaker 5: been a fair bit of bad news for all of 92 00:04:42,120 --> 00:04:44,400 Speaker 5: us over the last year or so. The hope is 93 00:04:44,520 --> 00:04:47,760 Speaker 5: that eventually, sometime soon, we may have seen the peak 94 00:04:47,800 --> 00:04:50,760 Speaker 5: of inflation and these interest rates might start to work, 95 00:04:51,120 --> 00:04:53,680 Speaker 5: might start to control that problem a little bit. So 96 00:04:53,800 --> 00:04:56,560 Speaker 5: in a sense, that's one bit of maybe good news 97 00:04:56,600 --> 00:04:59,440 Speaker 5: that could come from this. But the interest rates themselves 98 00:04:59,640 --> 00:05:02,880 Speaker 5: have a lot of different consequences. It's fair to say 99 00:05:02,960 --> 00:05:05,120 Speaker 5: most of them are bad, and they're the ones that 100 00:05:05,160 --> 00:05:07,760 Speaker 5: we want to step through today. So I think it's 101 00:05:08,000 --> 00:05:13,360 Speaker 5: worth maybe splitting it up into three different categories of consequence. Firstly, 102 00:05:13,400 --> 00:05:15,919 Speaker 5: there are consequences for the people who want to borrow money, 103 00:05:16,000 --> 00:05:22,120 Speaker 5: particularly homeowners who have mortgages. For those people, bad news, 104 00:05:22,279 --> 00:05:25,640 Speaker 5: really very bad news. Then there are the people who 105 00:05:25,680 --> 00:05:28,960 Speaker 5: maybe are looking to borrow soon, so particularly people who 106 00:05:28,960 --> 00:05:31,760 Speaker 5: want to buy housing. The story there's a little bit 107 00:05:31,800 --> 00:05:36,480 Speaker 5: more complicated, but again essentially bad news. But then finally 108 00:05:36,600 --> 00:05:39,000 Speaker 5: what is supposed to be I guess the silver lining 109 00:05:39,080 --> 00:05:42,280 Speaker 5: in this is that if you somehow manage to save 110 00:05:42,440 --> 00:05:45,960 Speaker 5: money at the moment, that you should be rewarded for that. 111 00:05:45,960 --> 00:05:47,720 Speaker 5: That that should be something that you get a bit 112 00:05:47,720 --> 00:05:49,599 Speaker 5: of a bonus for. And so there is a little 113 00:05:49,640 --> 00:05:52,360 Speaker 5: bit of good news there. There's some asterisks on there. 114 00:05:52,400 --> 00:05:54,440 Speaker 5: It's not quite as straightforward as it should be, but 115 00:05:54,760 --> 00:05:56,919 Speaker 5: will end on maybe a slightly more positive notes. So 116 00:05:56,920 --> 00:05:59,480 Speaker 5: I think they're the three main ways that this can 117 00:05:59,480 --> 00:06:00,240 Speaker 5: affect out a. 118 00:06:00,279 --> 00:06:03,760 Speaker 2: Day, Okay, and let's just take them one at a time. 119 00:06:04,040 --> 00:06:06,240 Speaker 2: Can we start with borrowers, who you said it's not 120 00:06:06,520 --> 00:06:07,080 Speaker 2: good news for. 121 00:06:07,800 --> 00:06:11,479 Speaker 5: Yes. So if you have a loan of pretty much 122 00:06:11,480 --> 00:06:13,720 Speaker 5: any kind, I mean, if you're a small business who 123 00:06:13,720 --> 00:06:17,480 Speaker 5: out alone, you know you'd be potentially paying more interest 124 00:06:17,560 --> 00:06:19,760 Speaker 5: on that loan from whoever is offering it to you. 125 00:06:19,839 --> 00:06:23,479 Speaker 5: That's just what higher interest rates mean. And particularly we 126 00:06:23,520 --> 00:06:24,960 Speaker 5: talk about that a lot in the context of the 127 00:06:25,000 --> 00:06:26,760 Speaker 5: biggest loan that most people take out in their lives, 128 00:06:26,760 --> 00:06:31,120 Speaker 5: which is a home loan. And what we're already seeing 129 00:06:31,680 --> 00:06:34,680 Speaker 5: is that the banks are passing on interest rates straight 130 00:06:34,680 --> 00:06:37,400 Speaker 5: onto their mortgage customers pretty much one for one in 131 00:06:37,440 --> 00:06:40,320 Speaker 5: every one of these nine interest rate rises. What that 132 00:06:40,360 --> 00:06:44,880 Speaker 5: has meant for people who have mortgages is higher monthly repayments. 133 00:06:45,480 --> 00:06:48,120 Speaker 5: If you're on a variable contract that allows it to 134 00:06:48,160 --> 00:06:50,120 Speaker 5: change month of the month, it would have changed immediately. 135 00:06:50,560 --> 00:06:52,680 Speaker 5: If you're on some sort of fixed contract maybe over 136 00:06:52,720 --> 00:06:54,640 Speaker 5: a year or two and it changes every year or two, 137 00:06:55,320 --> 00:06:57,320 Speaker 5: maybe you haven't been hit yet, but it's coming for you. 138 00:06:58,000 --> 00:07:03,080 Speaker 5: And I guess it's worth just emphasizing that that really 139 00:07:03,120 --> 00:07:05,719 Speaker 5: does make a huge difference to the budget of homeowners. 140 00:07:05,760 --> 00:07:08,479 Speaker 5: I mean, the mortgage for people who have one, is 141 00:07:08,600 --> 00:07:11,840 Speaker 5: such a defining feature that kind of shapes all of 142 00:07:11,880 --> 00:07:15,680 Speaker 5: your finances. And we are talking here about people paying often, 143 00:07:16,360 --> 00:07:18,360 Speaker 5: you know, sort of eight or nine hundred dollars even 144 00:07:18,440 --> 00:07:21,320 Speaker 5: maybe a month more than they were expecting to because 145 00:07:21,320 --> 00:07:23,600 Speaker 5: of these interest rate rises, and that's potentially with more 146 00:07:23,680 --> 00:07:26,720 Speaker 5: on the way. That's a really, really nasty strain on 147 00:07:26,760 --> 00:07:29,680 Speaker 5: a lot of people's budgets. And it comes into context, 148 00:07:29,760 --> 00:07:32,200 Speaker 5: of course, as we know where house prices have been 149 00:07:32,240 --> 00:07:34,440 Speaker 5: going up and up and up for the last two decades, 150 00:07:34,840 --> 00:07:37,040 Speaker 5: and so a lot of people were already struggling with 151 00:07:37,080 --> 00:07:40,480 Speaker 5: their mortgage payments on their very expensive houses. So you 152 00:07:40,600 --> 00:07:42,840 Speaker 5: take those people, those people who are under what we 153 00:07:42,880 --> 00:07:45,679 Speaker 5: call mortgage stress. In Australia has some of the highest 154 00:07:45,760 --> 00:07:48,800 Speaker 5: rates of mortgage stress in the world, and then you 155 00:07:48,880 --> 00:07:52,000 Speaker 5: add the interest rate pain. The real worry for a 156 00:07:52,040 --> 00:07:54,480 Speaker 5: lot of homeowners and other types of borrowers is that 157 00:07:54,520 --> 00:07:56,800 Speaker 5: this higher interest cost is just going to be unbearable, 158 00:07:57,120 --> 00:07:58,720 Speaker 5: that it's going to push people over the edge to 159 00:07:58,800 --> 00:08:01,320 Speaker 5: the point where they simply can't bake ends meet, maybe 160 00:08:01,320 --> 00:08:03,800 Speaker 5: they have to sell their house. That's got a lot 161 00:08:03,800 --> 00:08:06,440 Speaker 5: of broader implications, and that's where things could really start 162 00:08:06,480 --> 00:08:08,559 Speaker 5: to get ugly for people who are feeling that pinch. 163 00:08:10,000 --> 00:08:12,560 Speaker 2: It could, and it goes to a bigger conversation about 164 00:08:12,600 --> 00:08:15,120 Speaker 2: the housing market and the direction that might be going in. 165 00:08:15,600 --> 00:08:18,720 Speaker 2: I want to turn then to talk about renters because 166 00:08:18,800 --> 00:08:20,600 Speaker 2: I know a lot of people listening and people our 167 00:08:20,640 --> 00:08:24,640 Speaker 2: age aren't necessarily at the stage of taking out a mortgage, 168 00:08:24,720 --> 00:08:27,400 Speaker 2: but as renters there are also implications. 169 00:08:27,760 --> 00:08:30,040 Speaker 5: Yes, well not just people our age, Sara, literally you 170 00:08:30,440 --> 00:08:37,400 Speaker 5: and I people any age. Yeah, I don't have online Australians. Yeah, 171 00:08:37,480 --> 00:08:41,240 Speaker 5: So for those of us who are renting I mean, well, firstly, 172 00:08:41,760 --> 00:08:44,360 Speaker 5: people who rent tend to be people who don't earn 173 00:08:44,360 --> 00:08:47,760 Speaker 5: as much money, and those people are probably suffering more 174 00:08:47,760 --> 00:08:50,520 Speaker 5: than anyone from the higher cost of essentials. So there's that. 175 00:08:51,320 --> 00:08:54,200 Speaker 5: Then there's the fact that if your landlord is facing 176 00:08:54,200 --> 00:08:57,040 Speaker 5: a higher mortgage cost, or even if they're not, probably 177 00:08:57,040 --> 00:08:59,040 Speaker 5: passed a little bit of this cost of living crunch 178 00:08:59,080 --> 00:09:00,720 Speaker 5: onto you. We are in the middle of a renting 179 00:09:00,800 --> 00:09:03,120 Speaker 5: crisis where rents are going up faster than they just 180 00:09:03,360 --> 00:09:07,040 Speaker 5: ever have. So there's a bad story there. But then 181 00:09:07,080 --> 00:09:10,760 Speaker 5: when you look to the housing market and for people 182 00:09:10,800 --> 00:09:13,600 Speaker 5: who are trying to buy a house, the picture also 183 00:09:13,679 --> 00:09:16,480 Speaker 5: gets a little more difficult, essentially for the same reason. 184 00:09:16,600 --> 00:09:20,360 Speaker 5: Right if you, maybe a year or two ago, were thinking, Okay, 185 00:09:20,400 --> 00:09:22,960 Speaker 5: I can probably afford a six hundred thousand dollars apartment. 186 00:09:23,200 --> 00:09:26,680 Speaker 5: I can manage the monthly payments on that. Right now 187 00:09:27,120 --> 00:09:29,439 Speaker 5: the monthly payment's being higher. Maybe you can't afford that 188 00:09:29,480 --> 00:09:32,160 Speaker 5: apartment anymore. So the maximum price of something that you 189 00:09:32,240 --> 00:09:35,520 Speaker 5: might be able to afford has gone down. In other words, 190 00:09:35,559 --> 00:09:37,640 Speaker 5: it's sort of harder for people who are looking to 191 00:09:37,679 --> 00:09:41,120 Speaker 5: buy a house to get a foot in now. The 192 00:09:41,200 --> 00:09:45,160 Speaker 5: silver lining there might be if we're. 193 00:09:44,880 --> 00:09:46,520 Speaker 4: Digging deep for some good news here, we. 194 00:09:46,600 --> 00:09:49,480 Speaker 5: Really are, We really are. You know, for those people 195 00:09:49,559 --> 00:09:53,520 Speaker 5: it might be if all of that causes house prices 196 00:09:53,520 --> 00:09:57,080 Speaker 5: to fall really significantly. So we are starting to see 197 00:09:57,080 --> 00:09:58,800 Speaker 5: a bit of a fall in house prices. It's still 198 00:09:58,800 --> 00:10:00,360 Speaker 5: in the grand scheme of things, a bit of drop 199 00:10:00,360 --> 00:10:03,480 Speaker 5: in the ocean. But if you're really struggling to save 200 00:10:03,559 --> 00:10:05,440 Speaker 5: up for a deposit, and we do see a downturn 201 00:10:05,480 --> 00:10:07,640 Speaker 5: in the housing market, that might help you get over 202 00:10:07,679 --> 00:10:08,199 Speaker 5: that barrier. 203 00:10:08,559 --> 00:10:09,680 Speaker 4: Of course, though you're going to. 204 00:10:09,720 --> 00:10:12,400 Speaker 5: Be paying more month to month after that, So in general, 205 00:10:12,480 --> 00:10:15,280 Speaker 5: it's not great news for people who are looking to 206 00:10:15,320 --> 00:10:18,080 Speaker 5: get into the housing market either. They definitely face some 207 00:10:18,120 --> 00:10:21,800 Speaker 5: pretty significant costs. Anyway, you look, we're going to take 208 00:10:21,920 --> 00:10:22,600 Speaker 5: a short break. 209 00:10:22,640 --> 00:10:23,480 Speaker 3: We'll be right back. 210 00:10:36,200 --> 00:10:38,880 Speaker 2: For the love of God, Tom, is there any good 211 00:10:38,960 --> 00:10:40,320 Speaker 2: news for anybody? 212 00:10:40,400 --> 00:10:40,880 Speaker 3: I'm trying. 213 00:10:41,240 --> 00:10:43,319 Speaker 5: I'm really trying here, so. 214 00:10:43,160 --> 00:10:45,800 Speaker 4: I appreciate that, will you in the RBA? 215 00:10:46,080 --> 00:10:51,400 Speaker 5: Yes, So we'll end with anyone who is saving money. Firstly, 216 00:10:51,440 --> 00:10:53,959 Speaker 5: if you are saving money at the moment, I hate you, 217 00:10:54,840 --> 00:10:59,240 Speaker 5: but congratulations. And I guess this is a point that 218 00:10:59,280 --> 00:11:01,440 Speaker 5: we don't necessarily talk about as much. Right the way 219 00:11:01,480 --> 00:11:04,160 Speaker 5: this works put the RBA in interest rates, making it 220 00:11:04,240 --> 00:11:06,480 Speaker 5: more expensive to borrow that they want you to keep 221 00:11:06,520 --> 00:11:09,640 Speaker 5: your money in the bank con soer. So the other 222 00:11:09,720 --> 00:11:12,199 Speaker 5: side of that coin is that it should make it 223 00:11:12,240 --> 00:11:15,120 Speaker 5: more attractive to save. The interest rate that you get 224 00:11:15,160 --> 00:11:16,880 Speaker 5: on the money that you put in a bank account 225 00:11:16,880 --> 00:11:20,440 Speaker 5: should be higher. And that's not something we're really used 226 00:11:20,440 --> 00:11:22,280 Speaker 5: to even thinking about because the last decade or so 227 00:11:22,320 --> 00:11:24,080 Speaker 5: interest rates have been so low, has been a barely 228 00:11:24,120 --> 00:11:26,240 Speaker 5: any interest on the money that you've got the bank account. 229 00:11:26,240 --> 00:11:28,840 Speaker 5: So it's probably a fairly foreign concept for a lot 230 00:11:28,880 --> 00:11:32,880 Speaker 5: of people in their twenties. But now you know, certainly, 231 00:11:32,920 --> 00:11:35,479 Speaker 5: in terms of what the RBA is offering the banks 232 00:11:35,240 --> 00:11:38,440 Speaker 5: for the money that they have, it should be that 233 00:11:38,480 --> 00:11:42,960 Speaker 5: there's a greater reward for saving. There is a catch. No, 234 00:11:43,440 --> 00:11:45,240 Speaker 5: we can't just have any straight good news here. There's 235 00:11:45,240 --> 00:11:47,040 Speaker 5: got to be a catch, and that is that it 236 00:11:47,080 --> 00:11:51,040 Speaker 5: requires the banks to decide to pass that on to you. 237 00:11:51,559 --> 00:11:55,160 Speaker 5: And it may be surprise nobody to learn that the banks, 238 00:11:55,240 --> 00:11:56,839 Speaker 5: while they have been very happy to pass on the 239 00:11:56,920 --> 00:12:00,600 Speaker 5: higher mortgage rates to mortgage holders, have been somewhat slower 240 00:12:00,760 --> 00:12:03,680 Speaker 5: to pass on the more attractive saving rates to people 241 00:12:03,679 --> 00:12:06,600 Speaker 5: who have money saved with them. There have been some 242 00:12:06,720 --> 00:12:10,640 Speaker 5: changes though, and generally speaking there are higher rates of 243 00:12:10,679 --> 00:12:12,839 Speaker 5: return out there that you can get now then you 244 00:12:12,880 --> 00:12:16,320 Speaker 5: could get a year ago on your savings. But really 245 00:12:16,320 --> 00:12:18,400 Speaker 5: they make it pretty hard for you and you've got 246 00:12:18,400 --> 00:12:20,760 Speaker 5: to have a little bit of a look around yourself. 247 00:12:21,040 --> 00:12:23,800 Speaker 5: So generally speaking, what for example, the Big four banks 248 00:12:23,840 --> 00:12:26,640 Speaker 5: will do is they will change the saving rate on 249 00:12:26,640 --> 00:12:30,040 Speaker 5: one of their kind of premium saving accounts. So you know, 250 00:12:30,080 --> 00:12:31,760 Speaker 5: the banks do make it a little bit harder, but 251 00:12:31,800 --> 00:12:35,880 Speaker 5: there is in theory and generally speaking across the economy 252 00:12:35,920 --> 00:12:39,200 Speaker 5: there is opportunity for you to get more money from 253 00:12:39,320 --> 00:12:42,160 Speaker 5: whatever you have saved. And so rather than just sort 254 00:12:42,200 --> 00:12:44,960 Speaker 5: of encouraging you to google it, thankfully, in Australia we 255 00:12:44,960 --> 00:12:48,640 Speaker 5: have something called the Consumer Data Right, which is a 256 00:12:48,760 --> 00:12:53,400 Speaker 5: government funded and supported program that allows you to pass 257 00:12:53,440 --> 00:12:56,920 Speaker 5: on information to financial providers and basically get the right 258 00:12:56,960 --> 00:12:58,840 Speaker 5: advice about how to get the best rate for you. 259 00:12:58,920 --> 00:13:00,679 Speaker 5: So if you google the con hum a Data Right, 260 00:13:00,760 --> 00:13:02,640 Speaker 5: that'll take you to a government website and that'll give 261 00:13:02,679 --> 00:13:05,199 Speaker 5: you, you know, kind of the right way to go on that. 262 00:13:05,720 --> 00:13:07,360 Speaker 5: But to go a little bit further and the Treasurer 263 00:13:07,400 --> 00:13:09,840 Speaker 5: in the last few days has expressed a bit of 264 00:13:09,920 --> 00:13:13,040 Speaker 5: frustration that the banks haven't been passing on the bonus 265 00:13:13,040 --> 00:13:15,080 Speaker 5: to save us. He has been big on suggesting that 266 00:13:15,120 --> 00:13:16,679 Speaker 5: this is supposed to be the silver lining and that 267 00:13:16,720 --> 00:13:20,120 Speaker 5: it's frustrating that it's not happening. He's asked the competition 268 00:13:20,160 --> 00:13:22,520 Speaker 5: and consumer regulator the A trip will see to have 269 00:13:22,559 --> 00:13:24,240 Speaker 5: a look into this, so we may get some more 270 00:13:24,280 --> 00:13:26,520 Speaker 5: action over the next couple of months out of that. 271 00:13:27,040 --> 00:13:28,760 Speaker 5: But in the meantime, you know, if you are lucky 272 00:13:28,840 --> 00:13:31,439 Speaker 5: enough to have some money saved, you may be able 273 00:13:31,440 --> 00:13:33,760 Speaker 5: to find a higher rate somewhere. So maybe that's a 274 00:13:33,800 --> 00:13:36,200 Speaker 5: slightly favorable note to end on Zara a little bit 275 00:13:36,200 --> 00:13:37,000 Speaker 5: of good use there. 276 00:13:47,520 --> 00:13:49,880 Speaker 3: Thanks for joining us on the Daily OS. How have 277 00:13:49,920 --> 00:13:52,080 Speaker 3: you been feeling about the podcast this week? I know, 278 00:13:52,240 --> 00:13:56,520 Speaker 3: Zara and I've loved delivering some really interesting conversations this week, 279 00:13:56,600 --> 00:13:58,520 Speaker 3: and we would equally love if you could give us 280 00:13:58,600 --> 00:14:01,160 Speaker 3: a rating and review on whatever app you've got open 281 00:14:01,400 --> 00:14:04,040 Speaker 3: right now. It helps new people find us and join 282 00:14:04,120 --> 00:14:06,840 Speaker 3: the TDA community. Have a beautiful weekend.