10. December 2011 18:10
According to Treasurer Wayne Swan says the most important thing is for interest rate cuts “cuts to be passed on promptly.” Last November, the big four banks namely ANZ, NAB, Commonwealth and Westpac ended 25-basis-point cut. Among four banks, ANZ was the first to announce that they will slice their standard variable mortgage rates after the Reserve Bank cut the official cash rate. ANZ was the first to move, saying it would pass on the full 25-basis point reduction from December 16, taking its standard variable rate to 7.3%.
According to ANZ Australian Chief Executive Philip Chronican said, “ the banks retail margins were contracting as funding costs increased in the last six months, and these cost were now largely unrelated to movements in the official cash rate.” Interest cur-rates really help for the Australians, it would mean a lower income and hopefully it will cut this month because it would make for a better Christmas. Small business customers will also get relief because of the announcement of ANZ Interest rate from 25 basis points to 7.30% from December 16. However, ANZ also indicated that in future it will set its retail interest rates and will have potential for a rise as early January.