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NewsMixed response from Big Four to record low interest rate cuts
Mixed response from Big Four to record low interest rate cuts

Mixed response from Big Four to record low interest rate cuts

Last updated by Marissa Hunt on

Only one of the big four banks has confirmed so far it will pass on the Reserve Banks historic interest rate cut in full. ANZ said its variable home loan rate would drop 25 basis points to 5.38 per cent from Friday 8th May.  The Commonwealth Bank followed with a 20 basis point cut reducing its standard variable rate to history low 5.45 per cent, but as a surprise added 5 basis points to its term deposit rates. NAB and Westpac are yet to make an announcement.

Treasurer Joe Hockey said, “The decision to cut rates is good news for families and business” and is urging people to invest. Chief Executive of the Australian Chamber of Commerce Industry, Kate Carnell has welcomed the move, but said next weeks Budget must contain a long-term plan for the economy that will inspire business confidence.

“Look there is no doubt interest rates this low make borrowing for investment for growth are really good idea, its very compelling… the problem is, on its own it won’t be enough and its really important that next week Joe Hockey brings down a budget with a long term plan on how the budgets going to be brought back into balance that businesses can be confident about. Business confidence isn’t just about interest rates, its about understanding the country really has a plan for the future. So between interest rates and a budget with a plan, I think businesses can really get on with investing.” [1]

Not everybody is happy about the rate cut and you can hear from your very own guest speaker Christopher Zinn speak on behalf of FiftyUp Club to Glen Bartholomew ABC Radio News here

[1] Kate Carnell with ABC News Radio, 6th May 2015, http://www.abc.net.au/newsradio/

Originally posted on .

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Big Four Banks have a mixed response to record low interest rate cuts

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celia
celia from NSW commented:

The banks still don't get it, they don't pass on the rate drops for home loans, keep it themselves to profit investors and themselves, instead of helping out their real customers. 

Selwyn
Selwyn from QLD commented:

With respect to banks. The real interest killer is master card rates. Let there be no doubt that while the banks go through all this posturing the real killer of initiative and enterprise is the interest rates on mastercards and their ilk.The big four in particular have in their sights the capacity to "blead" the broad Australian community dry while looking after their big dividend recipients off shore. If Hockey was to do anything he would tell them to get real regarding Master card rates. Take a haircut and bring mastercard rates back to reality. I seriously doubt that Hockey and his mates in the parliament have the guts and the moral spinal fortitude to instruct banks to lower the mastercard rates. I am thinking 10% maximum. But boy o boy would there be a lot of shuffling of feet and screaming from the banks. You cannot tell me that the lowest cash rate in Australia's history should not see a reflection in borrowing rates for mastercard money . All banks are artificially propping up their balance sheets (telling the world at large how robust they are while the rest of us are being taken to the scaffold via their subsidiaries usurious rates of interest on MasterCard and the like. Hockey should instruct banks to reduce the master card rates or failing to do this he will "pull" their licence to operate in Australia. Just like Keating did. Selwyn Retschlag 

Someone
Someone from NSW commented:

I left Westpac 15 yrs ago for Ing Direct, after doing business with them for 30 yrs. Banked with them all that time and had home and business loans in that period. Never missed a payment. Whenever I wanted another loan I had to do all this paperwork & they would advise what percentage they would do, then I would compare with another bank, only then would they match it, yes only match it. Then one time I told them NO THANKS !!! Enough, Westpac the best customer you can win is the one you already have. Just give them the best deal you can. Ha ha just love these Ing guys to bits. Nothing is a problem to them and they drop their rates first. 

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