New Year, new cycle possibility for bank’s rates
(07 January 2013 – Australia) The ‘big four’ major banks in Australia are said to be considering self-initiated rate cuts this year, going out of cycle with the Reserve Bank of Australia (RBA).
The nation’s Big Four banks have refrained from passing on the full amount of RBA interest rate cuts for over two years but are now allegedly in boardroom discussions to slash rates independently.
Westpac is rumoured to be considering slashing its standard variable rate by up to six basis points as early as February, a move that could save A$160 a year for the average A$320,000 mortgage holder.
Many analysts expect at least one of the major banks to make a move by March.
If the banks were to make the move independently, it would ease financial conditions without the RBA needing to adjust policy.
National Australia Bank (NAB)'s executive of personal banking Lisa Gray, recently conceded that while the bank was now sourcing more than 50 percent of funding from term deposits, its funding costs had decreased, easing pressure on the bank's bottom line.
Westpac is rumoured to be considering slashing its standard variable rate by up to six basis points as early as February, a move that could save A$160 a year for the average A$320,000 mortgage holder.
Many analysts expect at least one of the major banks to make a move by March.
If the banks were to make the move independently, it would ease financial conditions without the RBA needing to adjust policy.
National Australia Bank (NAB)'s executive of personal banking Lisa Gray, recently conceded that while the bank was now sourcing more than 50 percent of funding from term deposits, its funding costs had decreased, easing pressure on the bank's bottom line.
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