In response to the 1 May Reserve bank meeting, as of today, 11 May all 4 major banks have announced pending cuts to the home loan rates charged to borrowers.
Not one major bank has cut their standard variable mortgage rate by the 50 bps cut that was made by the Reserve Bank of Australia on May 1 2012.
Citing funding pressures, and the increased costs of funding mortgages, particularly since mid-2011, the major banks have been more actively expressing the need to break-away from interest rate-setting that mirrors the Reserve Bank interest rate moves.
Could the days of mortgage rates moving with the Reserve Bank interest rate changes be over? Gail Kelly Westpac CEO commented “the Reserve Bank overnight cash rate is one factor…”
National Australian Bank (NAB) was first to announce they would reduce rates by 32bps. CBA then announced a 40 bps cut, followed by Westpac announcing a cut of 37 bps and finally ANZ announced a cut of 37 bps.
Outside of the big 4, here are some of the other changes:
ING bank cut by 30 bps
St George cut by 38 bps
Bank of Queensland Cut by 35bps
Adelaide Bank by 35 bps.