The article discusses how Australian banks are adjusting their funding costs and lending rates in response to the COVID-19 pandemic. The Reserve Bank of Australia plans to increase its cash rate to control inflation. This change is due to increased customer confidence and rising inflation rates post-pandemic. Tighter financial policies are being implemented to stabilize the Australian economy. As a result, Australian banks are facing higher funding costs and reduced demand for home mortgage loans. Future research should monitor the impact of these cash rate increases on the market and banks.