 Will the banks pass on all the rate cut?
Following today's decision by the Reserve Bank to cut official interest rates by 25 basis points, home owners are now waiting to see if the banks pass on any of the cut to home loans, and when.
ANZ, NAB and Westpac have all said their mortgage rates are currently under review, while Commonwealth Bank was the first to move this afternoon, cutting the rate on its standard variable home loans by 10 basis points to 5.64 per cent.
"We understand the importance of ensuring that in the current economic climate we support our home loan customers and pass on as much as we can with interest rate cuts," CBA executive Ross McEwan said.
If the cut is passed on in full by banks to customers, would reduce the monthly repayment on an average $250,000 standard variable mortgage by $38.
The Reserve Bank met today for their April meeting and moved to cut interest rates by 25 basis points, to 3 per cent. The official cash rate is now at the lowest point since 1960.
Treasurer Wayne Swan said the RBA's decision was a "positive announcement" and he hoped the banks would pass on the cut as soon as possible.
The central bank was under pressure to move on interest rates after jobs data released yesterday showed the jobs market drying up more swiftly than in either of the past two recessions.
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