Westpac: Expects 1% rate cut

by joy.manginsay 4. August 2012 00:27

Lenders and major banks has been forecasting that there will be a rate hikes this year. Westpac is one of the major banks believes that RBA will reduce the official cash rate by 1%.

According to Westpac Chief Economist Dr. Bill Evans, “We now expect a sequence of rate cuts beginning with 25 basis points in December 2011 and throughout 2012, totaling 100 basis points prior to a period of steady rate in 2013.” All the three of Australia’s “big four” banks still forecast at least one rate increase from the RBA in the coming months. Commonwealth bank believes that rate cut in a few weeks, NAB expects one in December and ANZ predicts another hike also.

Only ANZ passes rate cut on in full

by joy.manginsay 19. June 2012 21:24

Treasurer Wayne Swan had challenged the major banks to pass on the latest interest rate cut in full. Only ANZ decided to pass for giving households a “fair go” and ANZ customers benefiting from this decision. ANZ pass rate cut by full 25 points to 6.8%. NAB remains the lowest player in the market by 6.7% followed by Westpac with variable rate to 6.89% and the Commonwealth bank, lowering its mortgage rates by 21 points.

ANZ Australian Chief Executive Philip Chronican said, “Home loan customers are doing it hard at the moment and passing on the full RBA rate cuts was the right decision in the circumstances.” NAB, Westpac and Commonwealth are not passing on the full rate cut. The Central Bank tried to lift confident in economy by lowering official rates. More rate cuts are expecting for coming months and I think Australian Economy is in good condition now because of high growth figures and strong jobs.

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ANZ: Last Bank to pass rate cut

by joy.manginsay 15. May 2012 17:53

The Australian and New Zealand Bank or commonly known as ANZ Bank is one of the four largest banks in Australia. ANZ was the last bank to passed interest rate. What are the reasons why? What was the sagacity behind this decision?

According to Financial Economist and Director of Yellow Brick Road Funds Management, Christopher Joye, “ANZ has copped flack for its attempts to decouple from the RBA and it will likely be the last bank not to pass on the full 50-basis-point cut.” ANZ unilaterally jacked up rates in February and April 2012 and only increased 6 basis points. ANZ stands out in terms of cost and price margin of products. ANZ decided to delay the rate cut maybe because it can chisel back a few points of margin it needs to over the coming months.


ANZ Banking Group Increase Interest Rate

by joy.manginsay 20. February 2012 18:13

Australian and New Zealand Bank announced last 10th February 2012 that it will increase interest rates for variable rate mortgages and small business lending by 0.065. We remember that last December, ANZ was the only bank who passed Interest rate Cuts and unfortunately the Interest rate cut didn’t happen. ANZ’s decision regarding this review, really increased competition among banks for consumers and business deposits. Effective last 17th of February 2012, ANZ’s new standard variable mortgage rate was 7.36%pa. The intense pressure on retail and business margins are one of the considerations why ANZ came up this decision and also because of the increased competition among banks for consumer and depositors.

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