Julia Gillard urges banks to pass on rate cut
Residential property owners are waiting to see if the the big banks pass on the interest rate cuts, following the Reserve Bank's decision to ease the cash rate yesterday (December 4).
The RBA lowered interest rates by 25 basis points to three per cent – the lowest level since April 2009 during the peak of the global financial crisis.
Three of the big four are yet to act on yesterday's decision, keeping thousands of homeowners in suspense about whether they will receive an early Christmas present.
National Australia Bank announced that it will pass on part of the rate cut, reducing its standard variable home loan rate by 20 basis points to 6.38 per cent from December 10.
The Bank of Queensland was the first bank to respond to the cash rate cut, reducing its variable home loans by 20 basis points to 6.51 per cent from December 21.
ING Direct also announced that it would pass on the cut, slashing the standard variable rate of their Mortgage Simplifier home loan to 5.72 per cent.
ANZ is expected to announce its decision at its monthly review meeting on December 14.
Ahead of yesterday's decision, prime minister Julia Gillard urged the banks to pass on any rate cut in full to customers.
"Banks should take into account that Australian families will be looking to them to pass the interest rate reduction on in full," she said, News Limited reported.
"Even with the resilience of our economy, many families find it difficult to make ends meet."