 St George follows other banks with rate cut
St George bank will cut their standard variable home loan rate by 0.1 per cent to 5.79 per cent. The new rate will apply to both new and existing customers from 17 April.
St George's general retail bank manager Andrew Moore said the bank was unable to pass on the full cut.
"Since the start of the financial crisis, banks have been facing ongoing higher costs in both the short and long term wholesale funding markets," said Mr Moore.
So once again the banks blame higher funding costs as why RBA cuts could not be passed on in full.
The bank also cut business and commercial lending rates by 0.25 per cent. On Tuesday the Reserve Bank cut official interest rates by 0.25% bringing the cash rate down to 3 per cent, the lowest level since 1960. Other banks to cut rates by just 0.1 per cent are the Commonwealth, who was first to announce on Tuesday. Then ANZ and Westpac also cut rates by 0.1 per cent. The RBA had cut rates every month since September, but in March decided to leave rates on hold. Following today's April meeting the bank decided to lower the cash rate from 3.25 per cent down to 3 per cent, a 49-year low. Economists had been divided over whether the central bank would cut rates after its board meeting in Brisbane or leave the cash rate unchanged this month.
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