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.
