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Australia’s big four banks have already moved to pass the Reserve Bank’s interest rate cuts onto customers.
Following the Reserve Bank of Australia’s decision to deliver a long-awaited rate cut of 0.25 per cent, Australia’s biggest banks Westpac, ANZ, Commonwealth Bank and NAB were armed and ready to give the good news.
Westpac moved quickly to announce an interest rate cut of 0.25 per cent for home loan and deposit customers.
It will see Westpac customers with a variable interest home loan enjoy a cut effective from March 4, while deposit customers will see the change from February 28.
“Today’s decision will be welcome news for mortgage customers,” Westpac consumer chief executive Jason Yetton said today.
“By reducing the standard variable home loan rate by 0.25 per cent per annum, customers will save an extra $90 per month, or $1080 per year, based on a $500,000 home loan with principal and interest repayments.”
NAB then followed suit, announcing it would reduce its standard variable home loan rate by 0.25 per cent by February 28.
“We are very pleased to deliver this rate cut to home loan customers – we understand how tough it’s been for many Australians,” NAB chief executive for personal banking Ana Marinkovic said.
“The extended period of high interest rates has placed real strain on household budgets and this rate reduction will help to ease the financial burden.
“We wanted to move quickly after the RBA’s decision to provide customers with certainty.”
Commonwealth Bank then joined the financial conga line and responded to the RBA rate cut with a decision to decrease its variable home loan interest rates by the same amount.
All home loan variable rate changes announced today will be effective February 28, CBA said.
“We know that cash rate increases have been challenging for our home loan customers and they are looking forward to some relief,” CBA’s group executive for retail banking services Angus Sullivan said.
“We recognise some customers will continue to need support as they manage household budgets. We strongly encourage anyone who is experiencing hardship to contact us, so we can help with a solution that suits their circumstances.”
ANZ then announced it would too pass on the 0.25 per cent rate cut to its customers on variable home loan interest rates.
The bank said it would review its other interest and deposit rates.
“The Reserve Bank’s decision to reduce the cash rate is an important step for our economy and will be welcome news for our borrower customers, providing some long-awaited relief from cost of living pressures,” ANZ group retail executive for Australia Maile Carnegie said.
“We’re conscious that interest rates for borrowers remain high.
“While our data indicates that our customers are generally faring well, some will still be facing challenges.
“We urge them to reach out sooner rather than later to discuss options for any additional support required and we are committed to providing tailored solutions to ease financial strain, for both personal and business needs.”
Bankwest followed with the same decrease to its standard variable home loan rate.
Macquarie Bank was next out the gate with a promised rate cut of 0.25 per cent for variable home loan customers by February 28.
Smaller lenders are also tipped to follow suit.
Treasurer Jim Chalmers said Australians deserved the rate cut delivered by the RBA today.
“This is the rate relief that Australians need and deserve,” he told media.
“Now, we know that it won’t fix any and every challenge we have in our economy and household budgets, but it will help.
“It’s a demonstration of the progress that Australians have made together in the fight against inflation.
“That progress that we have made has been substantial, it is now sustained, and it’s reflected in the decision taken by the Reserve Bank today.”
The treasurer said he had spoken to the bosses at Australia’s big four banks ahead of their move to pass the interest rates onto customers.
“I don’t take credit for those decisions that they have made and announced already – in each case, they were already well progressed in their planning,” Chalmers said.
“But I wanted to say I consider that a very good thing, that each of the four major banks has already indicated that the benefits of this rate cut will be passed on in full.”
