Reserve Bank slashes interest rates by 0.75% p.a.
30 minutes prior to the running of the Melbourne Cup The Reserve Bank of Australia announced a 0.75% p.a. reduction in the official cash rate.
Many lending institutions have have resisted passing on the entire0.75%p.a. rate cut stating “the high costs of funds” as their reasoning despite having announced only 2 weeks ago that the cost of funds had reduced sufficiently to pass on the balance of the previous RBA interest rate reduction. The Federal Treasurer (Wayne Swan) has confirmed that he will continue to pressure the lenders to pass on the maximum savings to borrowers.
Below is the list of the interest rate cuts announced by the lenders:
AMP 0.75% p.a. Effective 17/11/2008
Westpac 0.65% p.a. Effective 10/11/2008
St George 0.62% p.a. Effective 14/11/2008
NAB 0.62% p.a. Effective 14/11/2008
Homeside 0.62% p.a. Effective 14/11/2008
Bank of Qld 0.62% p.a. Effective 17/11/2008
Rams 0.60% p.a. Effective 10/11/2008
Bank West 0.60% p.a. Effective 10/11/2008
Heritage 0.58% p.a. Effective 14/11/2008
CBA 0.58%p.a. Effective 11/11/2008
