Wait for it - big four banks to pass on interest rate cut
ALL four major banks will pass on the Reserve Bank rate cut, though customers will have to wait at least another week for the cheaper rates.
ANZ was the last to move, cutting its standard variable mortgage rate by a quarter of a percentage point to 5.63 per cent, the equal lowest rate offered by the big four alongside National Australia Bank.
NAB announced its quarter of a percentage point reduction earlier yesterday, following Commonwealth Bank and Westpac’s decisions on Wednesday.
While ANZ was the last to announce its cut, it will be the first to actually pass it on to customers, with its new rate to apply from February 12 — nine days after the RBA’s move.
Lower rates at its rivals will come into effect more than a week later, on February 20.
Research by comparison site finder.com.au shows major banks have been much faster passing on rate hikes than rate cuts during the last five years.
It has taken 11 days on average for an RBA rate cut to be passed on, while rate hikes have been imposed in seven days, spokeswoman Michelle Hutchison said.
“The longer a bank holds on passing on a rate cut, the more money they’ll squeeze from Aussie pockets before finally adjusting their rates,” she said.
More than 20 lenders have now announced they will pass on the RBA’s full rate cut to variable home loan holders.
The cuts: ANZ down 0.25% to 5.63% from February 12; NAB down 0.25% to 5.63%, February 20; CBA down 0.25% to 5.65%, February 20; Westpac down 0.28% to 5.7%, February 20.