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RBA Slashes Interest Rates by 1% p.a.

December 4, 2008 in Latest News, Rate Cuts by admin  |  No Comments

Early Christmas Gift from the Reserve Bank

The Reserve Bank was happy to provide extra Christmas cheer by slashing the official Cash Rate by a massive 1% p.a.

This is the 4th consecutive interest rate reduction and the RBA is calling for the Banks to pass on the full rate cut to their customers. CBA & NAB were quick to confirm that they would adhere to the RBA’s request whilst Westpac & ANZ have only passed on 0.80%p.a. & 0.83% p.a. stating that the “High Costs of Funds” prevented them from providing the full 1% p.a. savings for their customers.

Market pressures & Government influence will hopefully ensure that Westpac & ANZ will soon find a way to provide the same benefits as their competitors.

Listed below are the interest rate reductions that have been announced thus far by the Banks & other Lending Institutions.

Lender:                            Interest Rate Reduction:

CBA                                             1.00% p.a.

NAB                                             1.00% p.a.

Heritage                                         1.00% p.a.

Rams (100% owned by Westpac)                   0.90% p.a.

AMP                                             0.88% p.a.

St George                                      0.85% p.a.

Bank West                                     0.85% p.a.

ANZ                                              0.83% p.a.

Westpac                                        0.80% p.a.

Posted in Latest News, Rate Cuts.