Many home owners still don’t know whether their bank will pass on all, or some of yesterday’s half a per cent Reserve Bank rate cut.
Only two banks have acted so far.
NAB said it will pass on 0.32 per cent, while the Bank of Queensland lowered its rate by 0.35 per cent.
Benjamin Crock reports.
Home owners are unlikely to receive the full 50 basis point interest rate cut, something the Federal Treasurer says is unfair.
Wayne Swan, Treasurer: “These banks are very, very profitable and I think they ought to pass through this 50 basis point cut in full.”
Analysts however claim the Treasurer’s calls are wishful thinking.
Chris Richardson, Deloitte Access Economics: “They know that the banks won’t pass it all on.”
Steven Mickenbecker, Canstar Cannex: “That’s one of the almost certain things I’d suspect. 30 to 40 points somewhere is what I’d expect.”
A 0.5 per cent rate cut would save the average home owner $64 a month on a $200,000 loan, $94 a month on a $300,000 loan and a $126 a month on a $400,000 loan.
This morning ANZ were yet to pass on any of the cuts to its customers, despite today posting a $2.92 billion dollar first half profit, up 10 per cent from the last half.
Steven Mickenbecker, Canstar Cannex: “ANZ bank doesn’t even respond to Reserve Bank these days they’ll wait another week and a bit.”
Some economists also say more Federal rate cuts could come in August.
Savanth Sebastian, CommSec: “If home owner’s decide to actually use these additional savings to pay off their loan quicker, it’s not actually going to be great news for the economy.”
Benjamin Crock, QUT News.