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Personal Finance > Home Loans and Mortgages > Interest Rate News > Mortgage lenders on interest rates

Will banks cut their rate?

What action are the mortgage lenders taking after the RBA's rate cut?

 
Previous interest rate (%)
New interest rate (%)
Date effective
Non-bank lenders
9.29
No update
9.29
No update
9.30
8.60 ( 0.75)
12 Oct, 2008
Banks
9.37
8.57 ( 0.80)
13 Oct, 2008
9.37
8.57 ( 0.80)
13 Oct, 2008
9.33
8.53 ( 0.80)
13 Oct, 2008
9.36
8.56 ( 0.80)
20 Oct, 2008
9.36
8.56 ( 0.8)
13 Oct, 2008
9.40
8.65 ( 0.8)
20 Oct, 2008
9.42
No update

The RBA said on Tuesday it would lower the official cash rate to six per cent, slashing the rate by a full percentage point.

All eyes are now on the banks to see whether they will follow through with passing on the rate cut.

The major commercial banks matched the RBA's 25 basis point rate cut in September, the first in seven years.

But there are no guarantees the banks will match the RBA's move this time.

RBC Capital Markets senior economist Su-Lin Ong said that the rate move on Tuesday was about bringing down key lending rates.

"It is not movements in official cash that matter," she said.

"It is what borrowers borrow at.

"Given the increased pressures on banks, the RBA knows this is not going to be passed on fully."

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