RBA Cuts Interest By 1% – Will The Banks Follow?

Today the Reserve Bank of Australia cut interest rates to 3.25%. They claimed that the deteriorating world economic conditons is the major reason for the 1% reduction in the cash rate. To read the full report click here.

It will be interesting to see if the banks pass on the full interest rate cut. Politicians can huff and puff about major lenders passing on the full savings but it will be entirely up to the CEOs to make that decision.

I will keep you updated over the next week or so on the latest offerings from Australia’s major lenders and how much of the latest rate reduction they will pass on to consumers.

Westpac and ANZ have passed on the full 1.00%

Early this morning (4th Feb) NAB and Commonwealth Bank have also reduced their rates by 1% passed on to customers on the 13th February

I expect other second tier banks and lenders to follow suit. I will keep you updated.

ING have passed on 1%

RAMS will pass on 1% by the 9th

Suncorp have also passed on the full 1% but customers will have to wait until the 23rd

Bank West have also passed on the full 1%

It looks like all lenders have passed on the full 1% rate cut. However, news reports have intimated that all the big four banks are constantly reviewing their interest rate policy. This might mean that they might not pass on the full rate cut at future RBA meetings. We can only wait and see…

Keep an eye out in the next week or so to see how these lenders compare with their product offerings.