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ANZ, Westpac, CBA, NAB and Bank of Queensland pass on part of RBA rate cut
Topic Started: 2 May 2012, 11:16 AM (3,219 Views)
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BoQ passes on part of RBA cut

May 1, 2012 - 5:29PM

Regional lender Bank of Queensland is the first bank to move after today's cut in the Reserve Bank's cash rate, but has held back some of the easing, opting to pass on only 35 basis points of the 50 basis point cut.

BoQ chief executive Stuart Grimshaw said continued economic uncertainty had influenced BoQ’s decision to hold back 15 basis points.

Mr Grimshaw said funding costs continue to rise for the bank. Following the rate cut, BoQ’s mortgage rate falls to 7.11 per cent.

Read more: http://www.smh.com.au/business/boq-passes-on-part-of-rba-cut-20120501-1xwtq.html#ixzz1tfOk2m7P

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It's too soon to crow at the Reserve's big surprise

May 2, 2012

IF YOU are a borrower, don't be too cock-a-hoop that the Reserve Bank has cut its official rate by half a percentage point rather than the usual quarter. This just increases the scope for the banks to take a big bite before they pass what's left on to you.

But this won't comfort the silent majority - the greater number of people who lend to banks rather than borrowing from them. These people can expect to receive significantly lower interest rates on their term deposits, at a time when the sharemarket has been performing poorly.

The unexpectedly big cut is the closest we will come to an admission that, for months, the Reserve has overestimated the economy's strength and underestimated the dampening effect of the high dollar on manufacturing, tourism and other export and import-competing industries.

It may provide a little comfort to the becalmed retailers, though their problems relate more to the end of Australian households' three-decade borrowing binge, the growth in internet sales and consumers' continuing switch from goods to services.

Read more: http://www.nationaltimes.com.au/opinion/politics/its-too-soon-to-crow-at-the-reserves-big-surprise-20120501-1xxaj.html
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Banks hold back on bumper rate cut

Peter Martin, Chris Zappone
May 2, 2012

HOME and business borrowers are likely to get just two thirds of the 0.50 percentage point interest rate cut delivered by the Reserve Bank yesterday after the Bank of Queensland went out ahead of its rivals and delivered only 0.35 points.

The bank's decision to cut its variable rate to 7.11 per cent rather than 6.96 per cent will deny a customer with a $300,000 mortgage $28 a month.

Herald calculations suggest that if all the banks withheld as much of the cut as the Bank of Queensland they would hang on to an extra $1.2 billion a year.

The RateCity chief executive, Damian Smith, said none of the big banks was likely to show its hand until the ANZ announced its decision at its scheduled rates review on Friday week.

"They will allow ANZ to play its new role as unofficial price-setter," Mr Smith said. ''The signals from the big four suggest that they will try to hold on to part of this cut."

The Reserve made its decision taking into account what it knows about next week's federal budget, which will include deep cuts to government spending that are likely to slow the economy.

But futures traders were last night pricing in cuts totalling a further 0.50 points in the next three months.

Read more: http://www.smh.com.au/business/banks-hold-back-on-bumper-rate-cut-20120501-1xxak.html#ixzz1tfPOslGp
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ANZ posts $2.97b first-half cash profit

May 2, 2012 - 7:59AM

ANZ Bank has reported first-half underlying profit of just under $3 billion, a bumper result that will add pressure on the bank to pass on in full yesterday's official interest rate cut.

The cash result, which strips out one-offs and investment losses or gains, rose 5 per cent to a record $2.973 billion, close the level expected by analysts in a Reuters survey.

The net profit for the half, though, rose 10 per cent from a year earlier to $2.92 billion, slightly less than analysts had expected.

CBA bank analyst Ben Zucker said ANZ’s profit margins are under pressure in Australia, which would factor into the bank’s mortgage rate pricing decisions next Friday.

“There is still margin pressure,” he said. “There is a decline in margins and that still plays into funding cost pressure.”

“[But] at a headline level, the results look reasonably in line with expectations,” he said

Read more: http://www.smh.com.au/business/anz-posts-297b-firsthalf-cash-profit-20120502-1xxvm.html#ixzz1tfPjtUgE
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Taking time on rates worth $12m - every day

May 2, 2012 - 1:36PM

The big four banks save $12 million for each day they don’t pass along the Reserve Bank’s rate cut, research shows.

None of the four major banks have announced changes to their mortgage rates since the RBA lowered the cash rate by 0.5 percentage points yesterday, in order to spur the ailing domestic economy.

The Australia Institute derived the $12 million figure from the $1.1 trillion in total housing loans outstanding held by the big four according to the Australian Prudential Regulation Authority and then calculating the difference between a 50 basis point in the banks' combined revenue for one day. The Institute also assumed only 80 per cent of the mortgage market was in standard variable rates.

“The banks are engaging in a phoney debate about the cost of borrowing,’’ said senior research fellow David Richardson. He added that it was easy to see how a bank like ANZ, which posted nearly $3 billion in half-year profit today, could remain profitable while withholding mortgage rate reductions.

Consumers, politicians and activists have called on the banks to pass along the full rate cut to consumers in order for the domestic economy to benefit.

ANZ confirmed yesterday it would make no rate announcement until May 11, in keeping with the policy of updating the market on the second Friday of the month.

Read more: http://www.smh.com.au/business/taking-time-on-rates-worth-12m--every-day-20120502-1xyhn.html#ixzz1tgKKBqar
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NAB first out of the blocks to cut rates

May 2, 2012 - 3:56PM

National Australia Bank has become the first of the big four banks to lower its standard variable rate - but it will not pass on the full Reserve Bank rate cut.

The bank this afternoon said it would cut its standard variable home loan rate from 7.31 per cent to 6.99 per cent, effective on Friday.

The 32 basis point cut means NAB will hold back 18 basis points from consumers. NAB's move will be effective from Friday.

Read more: http://www.smh.com.au/business/nab-first-out-of-the-blocks-to-cut-rates-20120502-1xyt5.html#ixzz1tgrJyfQ9
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Shadow
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Didn't audas promise the banks wouldn't be passing any of it on?

audas
 
http://australianpropertyforum.com/topic/9514611/4/#post8305452

Reserve bank is expected to cut by 50 basis points with near zero inflation while ALL BANKS are expected NOT to pass this on

official interest rates are going to be slashed with absolutely no response from the banks
1. Epic Fail! Steve Keen's Bad Calls and Predictions.
2. Residential property loans regulated by NCCP Act. Banks can't margin call unless borrower defaults.
3. Housing is second highest taxed sector of Australian Economy. Renters subsidised by highly taxed homeowners.
4. Ongoing improvement in housing affordability. Australian household formation faster than population growth since 1960s.
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themoops
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Shadow
2 May 2012, 05:28 PM


Banks must be desperate to suck in some new idiots to keep the ponzi from collapsing, whilst still sticking it to their current slaves.
stinkbug omosessuale


Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments.
Frank finally and unintentionally gives it up and admits he got where he is, primarily via dumb luck!
See here
Property will be 50-70% off by 2016.
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Frank Castle
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Business As Usual

themoops
2 May 2012, 05:32 PM
Banks must be desperate to suck in some new idiots to keep the ponzi from collapsing, whilst still sticking it to their current slaves.
Yeah those dropping interest rates and rising rents are really sticking it to us landlords :lol

How are those falling deposit rates and rising rents working out for you moops? :to:
Ignore posts by The Whole Truth · View Post · End Ignoring
The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
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peter fraser
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themoops
2 May 2012, 05:32 PM
Shadow
2 May 2012, 05:28 PM


Banks must be desperate to suck in some new idiots to keep the ponzi from collapsing, whilst still sticking it to their current slaves.
I predict that most housing forums will crash before the end of 2013.

Any expressed market opinion is my own and is not to be taken as financial advice
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