RBA interest rates: Reserve Bank cuts rate to 0.75 per cent

日期:2020/6/15 11:29:12 阅读:498

Two of the big four banks have now cut their rates — but neither has done so by the full amount.
Commonwealth Bank was the first of the big four to cut rates. CBA will cut variable home loan rates by just 0.13 percentage points, barely half the amount of the Reserve Bank of Australia’s rate cut today. It said if it passed on the full cut this would disadvantage savers.

NAB later said it would cut rates by a sliver more — 0.15 per cent — on 11 October.

Australia’s official cash rate has fallen below 1.0 per cent for the first time in history with some economists saying it will stay down for at least another two years.

At its October meeting on Tuesday, the Reserve Bank (RBA) made the widely expected decision to drop the rate to 0.75 per cent — the third time it has wiped 25 basis points off since June.
CBA executive Angus Sullivan said on Tuesday evening that rates were now at all time lows, but Australia’s biggest bank wouldn’t be following suit with its cut.

“As the RBA cash rate has reached record lows, we face a difficult balancing act between the multiple, valid interests of our stakeholders.
“Particularly given it is currently not feasible to pass on the full rate reduction to more than $160 billion of our deposits which are at, or near, zero rates,” Mr Sullivan said.

“In balancing these interests, we have carefully considered how to best meet the needs of over six million savings customers — who may find it challenging to make ends meet with record low savings interest rates — with the needs of our 1.6 million home loan customers, who want to pay less on their mortgages; and the needs of our shareholders, many of whom are retirees who rely on our dividend.”