RBA reduced rates by 0.75%

[yo yo ma]

Another IR cut

http://www.rba.gov.au/Statistics/cashrate_target.html

 

[josko]

Don't know if I'm happy or sad. It just added another $13,000 onto my break fee.


Regards JO

 

[redwing]

Bewdiful

How much will the banks pass on dough?

 

[MichaelW]

Bewdiful

How much will the banks pass on dough?

Already posted an answer to that in the other thread. 58bp by the Commonwealth so far. The rest, yet to say.

Sim, any chance we can merge these threads? Or lock one of them...

Cheers,
Michael

 

[yo yo ma]

Sim, any chance we can merge these threads? Or lock one of them...

Better lock this thread... it was 2 min after the other one.

 

[Aaron Sice]

hang on - is the 0.58% that the CBA is passing on AFTER the 0.21% they passed on earlier?

or is that in total?

 

[Peter 14.7]

hang on - is the 0.58% that the CBA is passing on AFTER the 0.21% they passed on earlier?

or is that in total?

Yep, both. Peter

 

[yo yo ma]

I believe it is in addition to the 0.21% reduction... more about it in this thread.

 

[Aaron Sice]

okay, so they gave out 0.21% before any rate cut was announced, then passed on 0.58% after the 0.75% cut was formal....?

so, in effect, a CBA variable customer should have a 0.79% cut....?

 

[yo yo ma]

so, in effect, a CBA variable customer should have a 0.79% cut....?

The RBA has reduced rates in Sept, Oct and Nov by 0.25%, 1.00% and 0.75% respectively.

The CBA reduced rates by 0.25%, 0.80%, 0.21% and 0.58%.

Of the 2% cut, they have passed on 1.84% to date. As a customer and a shareholder, I am happy with this in the current climate.

 

[gman65]

Still awaiting on the rest to announce any cuts..

Seems like CBA has taken them by surprise (to the downside). Usually the others have been quick, within a few hours.

 

[Aaron Sice]

thanks yo yo ma. that's what i needed to hear.

cheers.

 

[buzzlightyear]

Still awaiting on the rest to announce any cuts..

Seems like CBA has taken them by surprise (to the downside). Usually the others have been quick, within a few hours.

Can't beleive they are still deciding or at least waiting to annouce. Surely they know their numbers. They would have known straight away what they could pass on.

 

[gman65]

Maybe the other banks only expected 0.5 drop, and passing on say 0.4, now they are trying to figure whether they can actually match?

 

[ianvestor]

Maybe the other banks only expected 0.5 drop, and passing on say 0.4, now they are trying to figure whether they can actually match?

I find it hard to believe any bank would be 'scrambling' to do anything.

I mean, there are only a few choices, the RBA usually does things in 25bps lots right? So they have a whole month to map out what they are going to do if the RBA drops 0, 25, 50, 75, 100, etc... then when it happens it should be a case of clicking a button.

Edit: Sorry I re-read your post and I guess that my theory doesn't account for what the competition does.

 

[MichaelW]

WBC just announced a 65bp cut to take effect from Monday! Woohoo!!

That brings their headline rate to 7.71% and my actual rate to 6.91% after my 80bp discount in the Pro Pack.

Happy days!!

http://business.smh.com.au/business/westpac-slices-rate-065-20081105-5i7x.html

Cheers,
Michael

 

[silversands]

I just heard on the radio .65% for Wpac.