The Reserve Bank looks set to leave interest rates on hold in December, and maybe well in to the New Year.

Minutes from its November board meeting show this month’s rate hike was a tough call, but a necessary move to control a strong Australian economy and rising inflation going forward. The RBA decided to raise rates this month even though it predicted banks would lift lending rates by more than the official increase, which of course happened.

The big four banks raised their variable home loan rates by close to double the official rate increase of 0.25 per cent. While a sudden 0.45 per cent hike on your mortgage rate is hard to stomach, it does mean the Reserve Bank is less likely to move again in coming months.

The main job of the Reserve Bank is to control the Australian economy. If other factors like rising unemployment or higher bank rates are doing that for them, they will stay on hold. The RBA said it will take higher bank rates into account when making future decisions on rates.

Economists say the minutes from this month’s board meeting aren’t as bullish as expected. They’re tipping no rate rise in December. The RBA doesn’t meet in January, which means the earliest we’ll get another rate rise is February.

The big banks have received a lot of flack for lifting their rates above the RBA increase as they report strong profit growth. In this month’s minutes the RBA said banks are experiencing higher funding costs… comments the Australian Bankers’ Association jumped upon as a justification of the double rate rise many Australian families face. It would be easier to sympathise with the banks if they weren’t reporting multi-billion dollar profits.

The banks assume we’ll complain about higher home loan repayments for a few days, maybe a week, and then move on with our lives. We’ll pay them extra and add to their profit growth. They must think we’re stupid. Unfortunately, they’re right. There’s more chance of getting a divorce than changing banks.

Stop whinging about your bank and take action if you’re really unhappy.

List all the products you have with your bank. I’m talking loans, deposit accounts, insurance policies, credit cards, superannuation and other investments. Look at the statements for the last year and add up all the interest, bank fees and premiums you paid. Then, to be fair, add the interest and investment returns you earned. This will show you how big a customer you are and give you information to negotiate a better deal.

Shop around online for a better alternative at websites like ratecity.com.au and infochoice.com.au. They can help you compare every type of loan and deposit account on offer.

Walk into your bank, talk to a staff member in person and demand a better deal. You know how much you pay in fees and what products you have. You’ve been online and researched other options available, now you have to confront your existing bank for some action. Banks know it’s better and cheaper to keep a good existing customer than go and find a new one.

Visit three other financial institutions to discuss your requirements and the process to make a change. Make sure you add up all your switching fees to check you won’t be worse off.

With interest rates likely to continue rising next year financial management is a priority. If your bank won’t budge then have the confidence to change institutions. You’ve done the homework and know the options…now back yourself.