Australia’s major banks have already announced rate cuts following the Reserve Bank of Australia’s decision to cut interest rates for the first time in four years.
Westpac, NAB, ANZ and Commonwealth Bank made their announcements just minutes after the RBA made its decision public on Tuesday afternoon.
NAB announced it would cut home loan interest rates by 0.25 per cent, with Personal Bank group executive Ana Marinkovic saying they were “very pleased” with the decision.
“We understand how tough it’s been for many Australians,” she said.
“The extended period of high interest rates has placed real strain on household budgets and this rate reduction will help to ease the financial burden.”
She added the bank wanted to “move quickly” after the RBA announcement.
The change will come into effect on February 28.
Meanwhile, Westpac also announced changes for its customers.
Variable home loan interest rates will decrease by 0.25 per cent for new and existing home loans as of March 2.
Its deposit account interest rates will also decrease by 0.25 per cent per annum, effective February 28.
ANZ said it would also decrease home loan interest rates by 0.25 per cent as of February 28, noting it was reviewing other interest and deposit rates.
ANZ Australia Retail group executive Maile Carnegie said the decrease was an “important step” for the economy.
“[It is] providing some long-awaited relief from cost-of-living pressures,” she said.
“We’re conscious that interest rates for borrowers remain high.
“While our data indicates that our customers are generally faring well, some will still be facing challenges.”
She added struggling customers should reach out “sooner rather than later”.
Commbank’s variable home loan rate changes — also a decrease of 0.25 per cent — are also effective February 28.
CBA Retail Banking Services group executive Angus Sullivan said the string of increases had been “challenging” for customers.
“We recognise some customers will continue to need support as they manage household budgets,” he said.
Your story claims an extensive period of high interest rates. That is utter BS if you think they were high you should have been around in the 80’s with rates in excess of 18% on mortgages and higher on personal loans
I lived in that era, and was ‘caught up’ in the ‘we’ll throw you the money, no matter what’, and the interest rates were atrocious 23%+ on unsecured loans. Could never get out of the ‘debt’ cycle until I retired from my last full-time job, and used the funds to finally pay out the debt.
Interest rates these days are ‘tame’ compared to the 1980s.
Very well said Steffan! I paid 18% too. Yes, some people may argue mortgage amounts were lower, but so were our wages. I was earning $20k a year those days.
I too lived in 17 plus interest rates so I agree with the opinions above.
Again though no media pointing out the effect on the elderly.
However today’s good news for those with superannuation maybe pleased that the asx and the big super funds have lost their woke dei policy argument.
Perhaps commonsense is returning to some industries who control shareholders money.
😁😁