Consumers endured extra rate rises on the way up (of rate cycle), then experienced smaller rate cuts than the Reserve Bank's rate cuts on the way down. What is next?
Quote:
Westpac's rise shows lack of competition
Westpac's hiked its standard variable lending rate by almost double the amount of the central bank's increase.
Australia's second biggest home loan lender yesterday delivered a bigger than expected interest rate rise, announcing it will increase its standard variable home loan rate by 45 basis points to 6.76 per cent.
It means repayments on a $250,000 mortgage will increase by about $71 a month.
Westpac's move came after the Reserve Bank delivered its third official cash rate rise in as many months, lifting the cash rate by 25 basis points to 3.75 per cent.
All other major and regional banks left Westpac to take the heat from the expected negative publicity, simply saying their rates are under review.
Analysts say Westpac's demonstrating the pricing power that the big four banks have due to reduced market competition.
Source: Sky News
Westpac's hiked its standard variable lending rate by almost double the amount of the central bank's increase.
Australia's second biggest home loan lender yesterday delivered a bigger than expected interest rate rise, announcing it will increase its standard variable home loan rate by 45 basis points to 6.76 per cent.
It means repayments on a $250,000 mortgage will increase by about $71 a month.
Westpac's move came after the Reserve Bank delivered its third official cash rate rise in as many months, lifting the cash rate by 25 basis points to 3.75 per cent.
All other major and regional banks left Westpac to take the heat from the expected negative publicity, simply saying their rates are under review.
Analysts say Westpac's demonstrating the pricing power that the big four banks have due to reduced market competition.
Source: Sky News