Home rates down, business awaits
(4 February 2009 – Australia) Australia’s big four banks strongly met the full RBA rate cut to home loan customers, although business and credit card customers are yet to receive the same treatment from all banks.
Westpac was the first to announce the full one percentage point rate cut to its variable home loan rate and is so far the only Big Four bank to also include business lending rates and credit card rates on the reduction.
One by one the other Big Four banks’ announcements followed, ANZ after Tuesday’s trading close, NAB’s announcement hit the news in the early morning, while CBA waited a little longer to release their announcement.
ANZ said that deposit rates and interest rates for credit cards, personal loans and business lending are still under review.
The banks also warned that customers may not be so lucky in the future, due to ongoing funding issues.
CBA said that as the world economic crisis continues and the current pressure remains on funding costs, any future changes in interest rates will need to reflect those higher costs of funds.
CBA concluded that, on this basis, they may not be able to pass on in full any future interest rate cuts, a notion also reflected by NAB.
Of the competitors, less news has emerged, with the likes of Members Equity still reviewing all rates and choosing to announce changes at the end of the week.
One by one the other Big Four banks’ announcements followed, ANZ after Tuesday’s trading close, NAB’s announcement hit the news in the early morning, while CBA waited a little longer to release their announcement.
ANZ said that deposit rates and interest rates for credit cards, personal loans and business lending are still under review.
The banks also warned that customers may not be so lucky in the future, due to ongoing funding issues.
CBA said that as the world economic crisis continues and the current pressure remains on funding costs, any future changes in interest rates will need to reflect those higher costs of funds.
CBA concluded that, on this basis, they may not be able to pass on in full any future interest rate cuts, a notion also reflected by NAB.
Of the competitors, less news has emerged, with the likes of Members Equity still reviewing all rates and choosing to announce changes at the end of the week.
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