More importantly, now for the banks reaction......
Kudos to the RBA.
Kudos to the RBA.
RBA Reduces rates by 0.50%
- Thread starter buzzlightyear
- Start date
Even if the banks only pass on 0.4%, that's still a $875 a month reduction in my interest bill!
That was unexpected, I was tipping 25 points myself.
I'm guessing borrowers will see about 35 to 40 points. The lender that passes on the full 50 points will be very popular.
I'm guessing borrowers will see about 35 to 40 points. The lender that passes on the full 50 points will be very popular.
Good move by the RBA.
25bp wouldn't have made much difference since the RBA knows the banks are not going to pass on the entire cut. So a 25bp would mean passing on may be 15bp which would bring the interest rate back to Jan '12 levels before the banks independently moved rates higher.
Cheers,
Oracle.
25bp wouldn't have made much difference since the RBA knows the banks are not going to pass on the entire cut. So a 25bp would mean passing on may be 15bp which would bring the interest rate back to Jan '12 levels before the banks independently moved rates higher.
Cheers,
Oracle.
I agree PT Bear. About 35 to 40 basis points. It is a shame that the banks have done such a good job to condition the public not to expect the rate cut in full.
They have done a very clever job of that.
Factor in that they will pass on way less than the full reduction and the glacial speed at which they will finally pass it on, I would say celebrations are a little premature.
Interest rates sliced by 50 basis points
The Reserve Bank has handed borrowers and the struggling non-mining sector some relief, slicing interest rates by 50 basis points in a surprise move.
At its May meeting the board of the central bank cut the cash rate to 3.75 per cent, its lowest level since December 2009.
The Reserve Bank has handed borrowers and the struggling non-mining sector some relief, slicing interest rates by 50 basis points in a surprise move.
At its May meeting the board of the central bank cut the cash rate to 3.75 per cent, its lowest level since December 2009.
i was hoping they didnt reduce it so I can buy as many IPs while I can, before the next recovery/mini boom
No boom or mini recovery in Melbournes property market in 2012. There is still time
Well Westpac have apparently updated their rates (by the change to today's date), problem is I can't see any difference!
http://www.westpac.com.au/personal-...s-calculators-rates/variable-home-loan-rates/
http://www.westpac.com.au/personal-...s-calculators-rates/variable-home-loan-rates/
So the worldwide economy has still not recovered 4 years after massive amounts of stimulus. The European Union is facing challenges to its very existence and further ECB funding is required. China and the BRIC forecasts are much lower than expected and the banks haven't even passed on the interest rate cuts yet. Retail spending in Australia is down, job numbers are down, the economy (apart from mining) is struggling and somehow Australian property prices are going to boom ? Alice i am in wonderland pass me the magic mushrooms.
It's a little soon for any lenders to reflect their interest rate changes on their website. They only do this when the rate changes become effective so what you're seeing on Westpac's site does not give consideration to the RBA change announced today.
For what it's worth I'm not seeing anything here that's changed recently for the variable rates. Fixed rates have been changing constantly over the last few months.
For what it's worth I'm not seeing anything here that's changed recently for the variable rates. Fixed rates have been changing constantly over the last few months.
The Reserve Bank has handed borrowers and the struggling non-mining sector some relief, slicing interest rates by 50 basis points in a surprise move.
At its May meeting the board of the central bank cut the cash rate to 3.75 per cent, its lowest level since December 2009.
To borrowers ans mining sector or to the Banks?
If the market truly is that sensitive to rates then it shows what a speculative mess we've turned Australian residential property into... it took a lot more than rate cuts to get property moving again in 2008. Until we clear a heck of an overhang in the stock on market through increased lending and sales volumes I can't see prices going anywhere too quickly...
Not sure if the banks want to swallow their pride though
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