What Lenders Have Passed on the RBA Rate Cut?
As the RBA reduced the official cash rate to a record low of 2.00% in May 2015, Australians have waited with crossed-fingers to see which lenders will pass on the full 25 basis point reduction to interest rates
14 May 2015: ANZ was the only one of the Big Four to pass on in full to home loan customers the 25 basis point cut. ANZ lowered its standard variable rate to 5.38% soon after the RBA made their decision earlier this month.
However, the Commonwealth Bank of Australia (CommBank) and National Australia Bank (NAB) did not follow suit. Both CommBank and NAB decided to trim their standard variable rate by 20 basis points. As a result, both of these banks passed on a portion of the rate cut, with their standard variable rates falling to 5.45 per cent and 5.43 per cent, respectively.
Westpac announced a cut to its variable rate by 0.22 per cent to 5.48 per cent after the RBA slashed its rate.
|Lender||Rate cut||Effective date|
|ANZ||-0.25%||Friday 8 May 2015||See latest rates|
|Commonwealth Bank||-0.20%||Wednesday 13 May 2015||See latest rates|
|NAB||-0.20%||Wednesday 13 May 2015||See latest rates|
|Westpac||-0.22%||Monday 18 May 2015||See latest rates|
Source: finder.com.au, ranked alphabetically. Dates may vary for existing customers. See full list of lenders who have cut their rates here.
Smaller lenders such as ME Bank announced that they would pass on the RBA cut in full, reducing their standard home loan variable rate to 4.88 per cent.
The Bank of Melbourne and Bank of Queensland (BOQ) both decided to reduce their home loan standard variable interest rates by 0.20%.
Our finder.com.au Reserve Bank Survey found that 47 per cent of industry experts anticipated this cut, with many predicting rate hikes in the near future.
What to do when rates change?
If you’re looking to take out a mortgage, conduct a home loan comparison today with our table below to make an informed decision regarding your home loan. Or if you are looking to refinance to take advantage of the cuts don't just go to one of the big four as there are plenty of lenders out there that may be abel to offer something that is not only cheaper but more suited to your needs.
Why the easing of monetary policy?
The Reserve Bank’s easing of monetary policy has been prompted by below-trend growth, high unemployment levels and weak domestic demand.
The Reserve Bank slashed the cash rate to 2.00% to promote sustainable growth and maintain inflation within target.
By lowering the official cost of borrowing, the Reserve Bank is hoping to improve consumer confidence which will create a stimulus in the economy.