how low will rba rates go, and how much will banks pass on

Discussion in 'Loans & Mortgage Brokers' started by SharonC, 13th Mar, 2020.

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  1. SharonC

    SharonC Active Member

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    hi all.
    just wondering thoughts on how much lower rba rates further will go down from 0.50%, and if there is quantative easing after that, how much are the banks going to pass on to customers from now.
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    hard to gauge really

    Not something I would rely on any form of strategy

    ta
    rolf
     
  3. Trainee

    Trainee Well-Known Member

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    how will the answer affect how you invest?
     
  4. Blueskies

    Blueskies Well-Known Member

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    Almost certainly another 0.25, by April meeting if not before. Banks are then in a tricky spot, if they pass it on in full it will further compress their margins, which probably isn't even in the national interest at this point, but at the same time they need to be seen to pass on some, if I had to guess (and I haven't really no idea) I reckon they won't pass it on in full, maybe 15 to 20 basis points this time.
     
  5. Yson

    Yson Well-Known Member

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    I wonder if the fixed rates would go down further
     
  6. Tony3008

    Tony3008 Well-Known Member

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    Not in UK:

    Four banks increase mortgage rates despite the Bank Rate being cut

    Some of Britain's biggest lenders have hiked rates on their fixed-term mortgages despite a steep interest cut by the Bank of England designed to ease the pressure on millions of borrowers.

    Lenders including HSBC increased charges on some loans after the Bank slashed the base rate from 0.75pc to 0.25pc.

    A cut of this magnitude would normally result in mortgages becoming cheaper – saving families hundreds of pounds and easing any financial pressure as the coronavirus outbreak brings the country to a halt.

    Most lenders have passed the savings on to customers with tracker rate mortgages. But HSBC, the country’s sixth biggest mortgage lender, has increased the interest rate on its fixed-term loans by as much as 0.1 percentage points.

    Accord Mortgages – which is part of Yorkshire Building Society – and Leeds Building Society both increased the price of new fixed-rate loans
    ....
    Banks cash in on coronavirus by increasing mortgage rates
     
  7. SharonC

    SharonC Active Member

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    wow. you and i got the answer within a wk, with cba's new fixed rates
     
  8. Never giveup

    Never giveup Well-Known Member

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    I was watching Four Corners on COVID19 and RBA Governor mentioned how they are working close with Political leaders and everyome needs to do their bit during these times-Does it mean they make cut IR again and make it record Zero?

    Main question How much banks will pass on ?
     
  9. geeza

    geeza Well-Known Member

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    St George didn’t pass on the last cut for variable loans right? I think only for fixed rates, I think all the big banks did the same