CBA Start the Rate cut

[Big Rog]

I'm sure they had given it prior consideration. But I don't think they'd anticipated NAB's announcement. I suspect if NAB had announced a 10bps move (or 15 or 20 or whatever) then ANZ and WBC would both have announced theirs by now.

If I were them, I'd be weighing up whether this gives them the opportunity to grab more than they would've otherwise since any the bulk of the poor publicity has already been worn by NAB.

If I were them, I'd also be tossing up whether there's a competitive advantage in seeing how the other now reacts. You can then position yourself exactly where you want in terms of a competitive position.

My broker reckons they big 4 all end up around the same mark eventually, and given that Westpac and ANZ were higher than the NAB and CBA, they should be able to come up with a drop of at least 15 points I would have thought. Its the same reasoning as to why the NAB and CBA did not drop much as they were already low in the marketplace.

Big Rog

 

[murtagh]

Does anybody know whether Suncorp is passing on the cut?

Suncorp usually take a week to update their website to "under consideration.." and then a week after that they'll make an announcement of their cut, which is usually effective as of another fortnight.

I was hoping for .2 from them, but maybe not with the way the majors have been going.

 

[AUSPROP...]

I wonder how much Pepper and MQB will cut their rates by? hahahahaha!

 

[LynnH]

ANZ have announced 0.10% to match CBA - nothing from WBC as yet.

UPDATE: WBC have just announced a cut of 0.10%, so NAB are all on their little lonesome. Maybe they'll reconsider in a few days and match the cuts of the other banks.

www.theaustralian.com.au

Cheers
LynnH

 

[Ajax]

"WESTPAC has become the third major bank to cut its standard variable mortgage rate by 10 basis points.

Westpac also slashed 25 basis points off its rates for business loans and credit cards.

The move comes after Commonwealth Bank of Australia and ANZ lowered their standard variable home loan rates by 10 basis points in the wake of a 25 basis points cut to the cash interest rate by the Reserve Bank on Tuesday.

Westpac's new standard variable home loan rate of 5.81 per cent would become effective on April 20, the bank said in a statement. "

 

[Rolf Latham]

nab wont

their logic is that they already "gave" 10 pts when no one else did in March

ta
rolf

 

[steveadl]

nab wont

their logic is that they already "gave" 10 pts when no one else did in March

ta
rolf

Yet they'll still be above CBA.

 

[Peter_Tersteeg]

ING followed the 0.10% cut which is a bit disappointing given they're funded just as well as the majors.

Good news though, Heritage Building Society passed on the full 0.25%.

 

[murtagh]

Does anybody know whether Suncorp is passing on the cut?

I was wrong, they did it in record time!

"SUNCORP REDUCES VARIABLE HOME LOAN RATES BY 0.10% pa" is the latest news release on their front page this morning.

 

[Rockstar]

Any announcement from St George yet?

 

[eternit]

Any announcement from St George yet?

0.1%

http://www.news.com.au/heraldsun/story/0,21985,25309164-5005961,00.html

 

[Spectre]

Yet they'll still be above CBA.

not necessarily for new stuff as they've changed their package limits. Existing stuff stays as it is - until you go to do a variation and they'll try to sting you then.

Also NAB Homeside announced drop of .10 effective 17/4 just today.

 

[sparky23]

Hey Rockstar how come your avatar is sideways on these days?

 

[twhurl]

OK Im torn between CBA and St George. I need to remortgage as ive got a crap Wizard loan as we were overseas. CBA now owns our loan so I was planning on marching in and threatening to leave. Do you think they will give a flying ... ?

 

[Ajax]

Any news on RAMS rate cuts?

 

[Rockstar]

Hey Rockstar how come your avatar is sideways on these days?

I fell over. Is that better Sparky?

 

[redwing]

So they now stand at :

• 5.64 per cent for Commonwealth Bank
  
• 5.74 per cent for NAB
  
• 5.79 per cent for St George
  
• 5.81 per cent for Westpac
  
• 5.81 per cent for ANZ
  
• Others?

According to the blurb at Comsec

The Reserve Bank this week cut the cash rate by 25 basis points
to 3%. The cash rate is at the lowest levels since February 1960
when it stood at 2.94%.

This is a very smart decision. Rates have been cut, confidence
has received a boost and the Reserve Bank has left the door
open for more stimulus if needed. The Reserve Bank strategists
must have been up all night running through the options, and it
looks like they have come up with a winner.

The Reserve Bank is now playing out the end game for rates, and
still with Australian rates three percentage points higher than the
US. Still, Australia is under-supplied with homes, not oversupplied
like the US. Australian banks are the strongest in the
world, and not being bailed out as in the US or UK. And
government finances are solid in Australia not haemorrhaging as
in the US.

Last month we indicated that the end point for rates wasn’t far
away. Now we are even more certain. If borrowers are wanting to
lock in rates, they need to think seriously about doing it. Property
investors should also be more motivated to act.

The Australian dollar now has a floor. Interest rates won’t fall
much further provided there isn’t a fresh bout of instability in the
US banking system.

Continued on site...

 

[sparky23]

I fell over. Is that better Sparky?

Yes thats much better! LOL