I understand why banks need to increase interest rates after the Reserve Bank of Australia increases rates.
40% of their funding is apparently from offshore.
So it would seem to me that the RBA increase in rates only affects 60% of their loans.
It would also seem to me that the banks should increase by less than what the RBA increases as their offshore rates are not affected by anything happening in Aust.
The should increase by less than the RBA by this reasoning.