 Home loan rates on hold
Only one bank has moved to pass on any of yesterday's rate cut by the Reserve Bank. The Commonwealth Bank has cut their rate by a mere 0.1 per cent. But the National Australia Bank has refused to pass on any of the rate cut.
By NAB and the Commonwealth not passing on the rates in full to customers will be paying up to $45 a month extra on the average $300,000 loan.
ANZ and Westpac have made no comment on rates as yet. Treasurer Wayne Swan has not been polite in saying what he thinks the big banks should do.
"Many Australians will see this as a slap in the face for people who are working hard to pay off a mortgage during this global recession," he said.
The Reserve Bank cut the official interest rate by 0.25% yesterday, bringing the cash rate down to 3 per cent. This is the lowest rate in 1960.
Just a few weeks ago the Reserve Bank governor Glenn Stevens said funding costs had fallen, hinting that home loan rates could be reduced.
However, NAB hasn't changed its rate of 5.74 per cent and CBA only shaved 0.1 per cent off its rate, bringing it down to 5.64 per cent. Both lenders were using funding costs as their excuse.
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