NAB, CBA, Westpac keep some of the Reserve Bank's cut
By Shaun Drummond
Updated May 7, 2015 — 6.28am first published May 6, 2015 — 4.11pm
Three of the big four banks have kept some of the Reserve Bank's 0.25 per cent rate cut to themselves, with both NAB and Commonwealth Bank reducing their standard variable mortgage rate by 0.2 per cent and Westpac by 0.22 per cent.
But Westpac and CBA have raised some of their deposit rates. Term deposit rates on CBA's eight month and Westpac's nine month term deposits have risen to 3.05 per cent. CBA also raised rates on its "GoalSaver" account to 3.05 per cent.
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All three have passed on the full 0.25 per cent cut to business customers, a further signal that fierce competition for mortgages and regulator pressure to curb home lending to investors is causing the banks to shift their growth plans to business.
NAB will cut its standard variable rate to 5.43 per cent, its lowest level in 37 years, on May 13.
Bank hybrids have fallen alongside bank shares, but hybrids might be being unfairly treated. Credit:Karl Hilzinger
CBA's rate changes also take effect on May 13, with its standard variable rate reducing to 5.45 per cent.
Westpac's standard variable rate reduces to 5.48 per cent on May 18.
In comments that were echoed by other banks, Jason Yetton, group executive of Westpac retail and business banking said they "wanted to recognise how important it is to maintain competitive savings rates for our depositors, many of whom are young people saving for a home and retirees."
"Increasing our deposit rate in this low-rate environment will also assist many retirees who have seen a significant reduction in income over the last two years."
NAB will provide financial products to REA Group, which will sell them under it's own label and also the NAB brand. Credit:Glenn Hunt
Westpac owned St George Bank followed the example of its parent, cutting its standard variable rate by 0.2 per cent to 5.54 per cent.
ANZ Bank was the only one of the big four to pass on the full 0.25 per cent cut its standard variable rate, reducing it to 5.38 per cent on Friday.
The chief executive of ANZ Australia, Mark Whelan, said on Tuesday: "We hope by announcing this decision today we're able to provide certainty for our customers looking to manage their household budgets as well as playing our part in supporting the broader economy."
Late on Tuesday ME Bank also announced it would pass on the RBA cut in full, dropping its standard home loan variable interest rate to 4.88 per cent.
Shaun Drummond writes on financial services from our Sydney newsroom.Connect via Twitter or email.