Delay in moving rates costing banks

The three big banks that have not raised their standard variable interest rates – NAB, ANZ and Westpac are losing three million dollars a day between them. The Reserve Bank raised the official cash rate by 0.25 per cent to 4.75 per cent last Tuesday. The Commonwealth Bank followed one hour later with a 0.45 per cent rate rise on its standard variable mortgage products and a 0.25 per cent rise on deposit products.

The other banks have not yet followed the CBA’s controversial move that has attracted a week long campaign of criticism from media, politicians, consumer groups and CBA customers. Each of the three other big banks are believed to be losing about $1.1 million per day for every day they don’t raise their mortgage rates by 0.25 per cent.

Source: The Age