Why banks want higher interest rates (and it's not what you think) - The Australian Financial Review

Interest rates are finally going up after 10 years, so it is time for a refresher on what makes banks decide to pass on rates to customers and how exactly they boost their profit margins.

So, when the RBA lifted interest rates by a quarter of a percentage point on Tuesday, the cost of borrowing money, in the overnight market from other banks, also went up by 0.25 per cent. This overn… [+7591 chars]

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