The latest lending indicators from the Australian Bureau of Statistics (ABS) saw the value of new loan commitments for fixed term personal finance rise 2.7% in September, following a rise of 6.2% in August 2023.
Commitments for personal lending were bumped up by an increase in the number of fixed term loans for travel and holidays (+8.45%) and road vehicles (+0.60%).
Meanwhile, the RBA has increased the national cash rate by 25 basis points after four months of holding steady. Economists from the Big Four banks are, for now, still forecasting that cuts could be coming at some point in 2024. However, don’t think that your lender will automatically lower your personal loan interest rate to match - you may need to negotiate or refinance your personal loan to benefit from any future rate cuts.