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Westpac follows ANZ in rate hike

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Australian Broker | 13 Feb 2012, 02:15 AM Agree 0
Westpac has followed ANZ in raising its rates in light of the RBA decision to hold steady
  • Scott B | 10 Feb 2012, 02:49 PM Agree 0
    It is now time for the other lenders to define the word competition and be competitive not follow the majors but become a major lender themselves.
  • Wes | 10 Feb 2012, 02:50 PM Agree 0
    Giving and taking with the recent 90bps to 100bps offers which slightly undercut others on price now taken back. Not a great PR exercise to the customers who selected or refinced to ANZ in the last 6 months of the specials.
  • John | 10 Feb 2012, 03:09 PM Agree 0
    This adds what $180pa to the cost of a $300,000 loan.
    Not too much to get overexcited about.
    ANZ has not made the sky fall in after all.
  • Country Broker | 10 Feb 2012, 03:10 PM Agree 0
    Inevtiable , due to cost of funds, it will be great for the broking industry as the press will crucify them for a week and borrowers will look to brokers to see what choice there is. It really just brings them back to where they were with larger deals, Simplicity Plus still looks like an OK deaL IF THEY LEAVE ALONE .

    Question is how long before the others follow. borrowers will be nervous for a week or two and then borrow in real terms rates are very low.
  • Mat | 10 Feb 2012, 03:22 PM Agree 0
    I say good on them for at least having a definite date each month to make a decision. As a broker, I'm sick of waiting up to two weeks after each RBA change before I can start making recommendations to my clients.
  • TB0NES | 10 Feb 2012, 03:27 PM Agree 0
    So much for Mr Universe (Treasure) and his BS about going down the road for a better deal, when you just don't know what you're walking into...
  • Positive Broker | 10 Feb 2012, 03:36 PM Agree 0
    Just proves the folly of selling on rate. My decision to reduce my panel of lenders to include those with a consistently competitive rate and good loan features was right after all! I won't be swayed by specials no matter how good they seem at the time.
  • Ray Costello | 10 Feb 2012, 03:36 PM Agree 0
    The ANZ and the other banks are highly leveraged institutions with a license from government to lend money with less than 10% capital capital to support their loan book.

    This degree of leverage would be extremely risky except that the Reserve Bank stands ready provide back up liquidity if needed.

    During the GFC, the government provided guarantees of bank deposits and enabled the banks to use on the Government's AAA credit rating to borrow overseas during the GFC.

    In short, banks are privileged institutions owing an obligation to the people of Australia to co-operate in the regulation of the financial system, of which the principal tool is the setting of interest rates by the Reserve Bank.

    If the banks destroy the effectiveness of monetary policy, as the ANZ seems intent to do, then a return to an earlier tool of monetary policy - a requirement for banks to lodge statutory deposits with the Reserve Bank, seems necessary and inevitable.
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