The Reserve Bank announced today a 100 basis point (1% p.a.)cut to the official cash rate.
The Federal Treasurer (Wayne Swan) has warned borrowers not to expect the Banks to pass on the full 1% p.a. interest rate cut due to the increase in the “Cost of Funds” on the international markets.
Westpac, CBA, ANZ and NAB have reacted swiftly to the RBA’s decision announcing the banks would pass on a 0.80% p.a. interest rate cut to their customers, whilst Rams has trumped the banks by announcing Rams customers would receive a 0.90% p.a. interest rate cut.
The other banks and lending institutions are expected to make their announcements regarding interest rate reductions over the next few days.
Below is a list of the interest rate cuts announced by the banks and other lending institutions and the date these savings will be passed on to their customers.
Rams 0.90% p.a. Effective 13/10/2008
AMP 0.80% p.a. Effective 18/10/2008
Heritage 0.80% p.a. Effective 16/10/2008
Westpac 0.80% p.a. Effective 13/10/2008
Bank West 0.80% p.a. Effective 17/10/2008
ANZ 0.80% p.a. Effective 13/10/2008
NAB 0.80% p.a. Effective 20/10/2008
CBA 0.80% p.a. Effective 13/10/2008
St George 0.80% p.a. Effective 13/10/2008
Wizard 0.80% p.a. Effective 16/10/2008
Aussie 0.75% p.a. Effective 13/10/2008
