Only two of the big four banks have announced interest rate cuts of 100 basis points passing on the Reserve Bank reduction in full, as expert warn to expect more rate cuts in the next year.
The Reserve Bank\’s cut the cash rate by 100 basis points to 4.25 per cent, its lowest level in six and a half years.
The Commonwealth Bank was first off the pace, cutting its rates by 100 basis points within minutes of the central bank\’s announcement.
National Australia Bank also matched the reduction, which will save customers $250 a month in interest on an average $300,000 home loan.
“Ending the year with home loan interest rates at levels not seen since 2003 is certainly a great way to close out the year,” NAB\’s Australian chief executive Ahmed Fahour said.
But while the Commonwealth and the National Australia Bank have matched the RBA cut, Westpac says it will only pass on an 80 basis points reduction.