Three out of four move out of bounds
(8 December 2009 – Australia) Three of Australia’s big four banks have increased their interest rates outside of the Reserve Bank of Australia’s official interest rate announcement.
ANZ has joined the Commonwealth Bank and Westpac in increasing its home loan rates and are receiving strong criticism from Australia’s powers and consumers alike.
Last Tuesday, the Reserve Bank of Australia increased the official cash rate by a further 25 basis points; this was the third consecutive move by the authority, lifting the rates from 50 year lows.
Westpac moved first announcing that it would be increasing its interest rates by 45 basis points, the biggest of the big four.
Westpac’s standard variable home lending rate will now stand at 6.76 percent per annum. Business loan rates were risen by 0.25 percent.
Westpac defended its actions saying that continued cost pressures in the wholesale markets combined with the RBA’s increase forced the bank to make the substantial increase.
The Commonwealth Bank followed next, lifting its rates by 37 basis points to 6.61 percent and ANZ announced later the same day that it would be increasing rates by 10 basis points above the RBA with an overall increase of 0.35 percent on its standards variable rate.
The National Australia Bank was the only bank out of the big four to keep in line with the RBA’s increase of 0.25 percent.
Treasurer Wayne Swan said he was pleased to see NAB not following its competitors.
The other banks will have to live with the consequences of their action and will be harshly judged by their customers and by the broader community, Mr Swan added.
Last Tuesday, the Reserve Bank of Australia increased the official cash rate by a further 25 basis points; this was the third consecutive move by the authority, lifting the rates from 50 year lows.
Westpac moved first announcing that it would be increasing its interest rates by 45 basis points, the biggest of the big four.
Westpac’s standard variable home lending rate will now stand at 6.76 percent per annum. Business loan rates were risen by 0.25 percent.
Westpac defended its actions saying that continued cost pressures in the wholesale markets combined with the RBA’s increase forced the bank to make the substantial increase.
The Commonwealth Bank followed next, lifting its rates by 37 basis points to 6.61 percent and ANZ announced later the same day that it would be increasing rates by 10 basis points above the RBA with an overall increase of 0.35 percent on its standards variable rate.
The National Australia Bank was the only bank out of the big four to keep in line with the RBA’s increase of 0.25 percent.
Treasurer Wayne Swan said he was pleased to see NAB not following its competitors.
The other banks will have to live with the consequences of their action and will be harshly judged by their customers and by the broader community, Mr Swan added.
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