Big four taking turns on interest rate rises
Fairfax columnist Michael Pascoe described it as a “cute way” the big four banks have seemingly taken turns at being the first to move their mortgage rates by less than a Reserve Bank rate cut – or to increase their rates by more than an RBA rate rise or to just raise them outright.
“It’s so cute that a cynic might wonder if it's staged,” Pascoe added.
Property Observer charts the decision leaders:
Westpac raises its standard variable mortgage rate by 45 basis points after the RBA increased the cash rate by just 25. The other banks followed by lower amounts, so Westpac’s Gail Kelly copped most of the attention. Little did we know that Kelly had shown her confidence in the Sydney property market just a month earlier when she spent a record $8.95 million on her Terrey Hills acreage property, albeit without any mortgage.
The Commonwealth Bank announced a 45-point hike after the RBA's Melbourne Cup Day 25-point increase. The others followed a little later and a little lower, leaving then CBA chief executive Ralph Norris to cop most the attention.
The National Australia Bank passed on just 20 points of the RBA's 25-basis point cut.
ANZ led the way with a six-point increase last Friday afternoon, followed by Westpac's 10-point effort at sunset, which suggests Gail Kelly’s recent safari trip in South Africa has emboldened her.
