ANZ cuts 25bps, CBA and NAB 19bps, WBC ponzi’s up

Via ANZ:

Today we have decided we will reduce variable interest rates for our home loan customers by 0.25pc pa. Importantly, we will apply this reduction across all our variable rate home loans.

It took the pain last time so now it someone else’s go. CBA’s!

In response to the Reserve Bank’s move to cut the cash rate from 1.25 per cent to 1 per cent on Tuesday, Commonwealth Bank announced it would cut the standard variable rate for owner-occupiers and investors paying principal and interest on their mortgage by 0.19 percentage points.

CBA will cut rates for interest-only mortgage-holders by 0.25 percentage points and is expected argue that these customers are more likely to spend the savings and create the economic benefit sought by the Reserve Bank.

The bank has also offered sweeteners to its deposit-holders in a move it argues provides a fair balance between savers and borrowers. It will create a new special five-month term deposit with a 2.2 per cent per annum interest rate and offer a further 0.1 per cent on top for pensioners.

NAB also went 19bps. WBC ponzied up with 20bps for owner-occupiers and 30bps for investors with interest only loans.

David Llewellyn-Smith
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  1. proofreadersMEMBER

    So, ANZ figures depositors are just going to keep taking it up the anus, no questions asked?

  2. No …….surely your not suggesting that banks act like a cartel and collude with one another. Royal Commish found no evidence of this !
    RBA is probably hoping that savers will invest else ware, like that dirty share market. I know i wont be spending a f*cking cent, let this shit go to hell, time for a clean out !

  3. This is the rate cut that does it for me as a saver. My bank is not ANZ, but [insert appropriate metaphor here…same same].
    I’m taking half a mill out of term deposits with [other bank] and buying Vanguard hedged US Treasury Bond ETF.
    I expect a lot of depositors are thinking this way, so good luck funding your housing loans big 4 banks, it won’t be with my money

    • proofreadersMEMBER

      +1 – I am tired of being screwed by the RBA and private banksters and am fed up with buying petroleum jelly protection.

    • MountainGuinMEMBER

      With the banks loan to deposit ratio, large withdrawals will hurt them. I may follow your lead Arthur as I think I have just a few months left on a term deposit.

      • proofreadersMEMBER

        Presumably, they couldn’t give a toss and APRA can forget their Net Stable Funding Ratio (I think that’s the one where APRA hopes that the banks won’t have a somewhat hot (at call) money deposit book?)?

        Wonder what rates the wholesale funders are now getting and whether retail depositors are also subsidising those?

    • Interesting idea Arthur – but why hedged? Im in a similar position (but less $$s). I’m tossing up between throwing more into my MB Foundation Fund, HSBC USD term deposit or some sort of ETF like you mention. Will clear out the CBA TD but probably roll over the UBank one – just over 2% atm but will see what the rate is when it gets closer to maturity in a few months (CBA one due in a few weeks).
      Open to any ideas – prioritising capital protection.

      • Hedged means you are not subject to forex risk so you won’t lose money if the USD goes down (and you won’t make money if the USD goes up). It is a safer less volatile option (but will have higher fees, be careful). If capital preservation is your goal, and you ultimately will be cashing back out into AUD, then hedged is probably the way to go.

    • Yup, I took basically the same out after the last cut. Had it in ubank and ING, I now keep less than 5k in each….and take great pleasure in looking at my savings ‘progress’ graph drop off massively!

  4. proofreadersMEMBER

    ” and offer a further 0.1 per cent on top for pensioners.”

    And if that is not a bank with a big heart, I don’t know what is? How good is Straya.

  5. Time to buy some bond ETFs, I have no idea how banks are going to attract savings with these low rates. It’s madness.