Banks cut again to meet RBA
(22 October 2008 – Australia) After cutting interest rates just short of the RBA rate cut, the major Australian banks have passed on the rest of the 100 basis point cut, with some going a little further.
The start of October brought with it a 1.0 percent cut in the official interest rate by the RBA. Along with it came numerous calls for the banks to pass on the full amount.
Led by Westpac, the Big Four banks, as well as the Regionals, passed on most of the rate cut, at 0.8 percent. Turbulent market conditions were cited as the reason that the banks kept extra margin in reserve.
Among others, however, CBA announced that it would look to cut interest rates by an amount greater than the official rate cut once turbulent market conditions levelled out.
Now, with ANZ taking the lead, the Big Four banks have all passed on the full official interest rate reduction.
ANZ went one better, passing on an extra 0.25 percent, taking their rate reductions in October to 1.05 percent. CBA and St George have also passed on a little extra, with a 0.21 percent reduction.
NAB and Westpac passed on an even 0.20 percent, with Westpac lagging behind in their announcement after leading on the first rate reduction.
The CBA rate cuts means that they have met their promise of passing on more than the official rate cut, albeit by the most slender of margins.
Some smaller lenders are yet to officially announce the second rate reduction.
Led by Westpac, the Big Four banks, as well as the Regionals, passed on most of the rate cut, at 0.8 percent. Turbulent market conditions were cited as the reason that the banks kept extra margin in reserve.
Among others, however, CBA announced that it would look to cut interest rates by an amount greater than the official rate cut once turbulent market conditions levelled out.
Now, with ANZ taking the lead, the Big Four banks have all passed on the full official interest rate reduction.
ANZ went one better, passing on an extra 0.25 percent, taking their rate reductions in October to 1.05 percent. CBA and St George have also passed on a little extra, with a 0.21 percent reduction.
NAB and Westpac passed on an even 0.20 percent, with Westpac lagging behind in their announcement after leading on the first rate reduction.
The CBA rate cuts means that they have met their promise of passing on more than the official rate cut, albeit by the most slender of margins.
Some smaller lenders are yet to officially announce the second rate reduction.
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