Second major moves on rates

by Adam Smith08 Jun 2012

Another major has slashed rates following ANZ's 25bp cut.

Westpac has this afternoon made cuts to its standard variable rate, but unlike rival ANZ, the bank has not passed along the full RBA rate cut.

Instead, Westpac cut 20bps, to take its rate to 6.89%. The bank's executive of retail and business banking Jason Yetton said the decision balanced the interests of depositors and mortgage holders, and pointed to the bank's discounts on offer

"We fully appreciate the financial pressures that many households are currently facing even though the economy as a whole is doing well as the latest GDP and job figures released this week showed. That is why we continue to offer discounts on our headline mortgage rate which will see nearly 90% of our home loan customers pay no more than 6.19%," Yetton said.

Yetton also pointed to Westpac's fixed rate offering, and said the bank would reduce its three-year fixed rate to a discounted 5.89%.

While mortgage holders did not receive the full RBA cut, Westpac said business borrowers would receive the full 25bp reduction.

"Despite increased funding costs, we recognise that it is particularly important at this time to help small business in this way given the critical part this sector plays in supporting the economy and maintaining employment as a whole," he said.

COMMENTS

  • by BradQ 8/06/2012 4:11:11 PM

    I still think what they are ll doing is jacking up the rates on variable to cover the banning on exit fees.... and keeping fixed rates the more competitive option, as they know the customer is going to stick around....

  • by JERRY gIBB 8/06/2012 4:21:23 PM

    he fully understands the pressures householders are under. I do not think so!!!. Greedy and if you are a Westpac client you would seriously question why you would bank with them. Greed is the only motivating factor with this industry. Government get off your bottoms and make these organisations tow the line as the Reserve is trying to stimulate the economy and this industry does the opposite.

  • by Garry 8/06/2012 4:26:40 PM

    The discounts on offer to mortgage holders is no better than the other majors. I get 1.0% discounts for all of my clients with all lenders. This is just greed from Westpac who have always charged higher rates than the others. This greed isnt helping tham at all.