Low inflation level - rate cut next week?

It's done, 0.25% cut.
Now waiting on the banks... Who will blink first...

 

ING sent a promotional email a few minutes before the announcement

 

CBA only moves by 0.13%.

CommBank on Twitter

 

CBA 0.13%.. I'm surprised they did this. I'm not surprised they were cheapskates. I expected it. But I am a little surprised they spread the pain across P&I and I/O . I thought they'd give 25 points to P&I and nothing to I/O to be honest. Or 20 and 5..... but not 13 and 13

Now the election is over and the threat of a royal commission is essentially gone, the banks are reminding us once again that they can do as they please.

I've been writing for over a year about the need for banks to improve their margins now, ahead of the BASEL IV changes coming next year and 2018, where they are going to face upwards pressure on their costs of funds, and will have to undertake capital raising to provision for the higher Tier 1 capital requirements they need to have in place by 2018.

I guess they saw this as an opportunity too good to refuse, to get straight to work on building those margins now....

 

Even a partial pass on would be great. To the extent it's not fully passed on, we can benefit by buying bank shares.

 

**** CBA. I'm glad I don't bank with them. People should vote with their money and move banks if they are not looked after as customers.

 

NAB is only passing 0.10%. It is virtually guaranteed none of the majors are going to pass on the full rate cut. Me thinks the best you can expect will be 0.15%

Cheers,
Oracle.

 

Source for NAB?

 

Source: news.com.au

 

This is why I fixed my rates below 4%.. RBA interest rates may go to zero but the banks will continue to f*** us

 

Arg. Just saw the news re NAB. **** NAB too.

 

Fixing rates is also carries risk. Rates could keep dropping for a long time coming so fixing could end up costing you a lot. One more rate drop this year added with some new competition from smaller lenders could bring down some lending rates to 3%.

 

Just hit the inbox (from NAB);



Homeplus variable rates rates reduced!

Effective Friday 19 August 2016, NAB Broker will reduce the variable indicator rate on all new and existing variable home loans by 0.10% p.a.

*The new lending indicator rates will be as follows:

• Owner occupier principal and interest – 5.28%
• Owner occupier interest only – 5.38%
• Residential investor principal and interest – 5.43%
• Residential investor interest only – 5.53%

NAB Broker will also reduce its rates for NAB Peak Performance by 0.10% p.a.

Please note: This reduction will not apply to our current special offers.

An updated rates flyer will be distributed in due course.

*thats the SVR not including discounts.

 

Commonwealth Bank will cut its standard variable interest rates by 0.13 percentage points
ANZ by 0.12 percentage points.
National Australia Bank 0.10 percentage points.
Westpac will reduce its rates by 0.14 percentage points for customers with principal and interest home loans, and 0.10 percentage points for customers with interest-only loans.

 

Have any brokers heard anything from ING yet?

 

Are there any higher powers organisations that can force the hand of banks and force them to pass it on in full and not delayed by 17 days...?

 

This is where you need to put your temple to work.
Think of the sponsorships should you be successful.

 

I'm a big CBA customer, but CBA shares also hold the biggest individual stock component in my share portfolio. They are all as bad as each other from a consumer perspective

 

Give K-Mart a call?

 

The whole point of RBA controlling the official cash rate is so they can control inflation. stimulate the economy when required and cool it down if required. If banks don't pass on the rate changes the RBA's powers are diluted. No point in having them in the first place. They meet once a month what do they do during the rest of the time. They should work out how to increase competition.

I have a feeling the banks are just colluding just following the leader when one makes a move the rest follow suit... total bs.