The day the rates went up
Business Day reporter Chris Zappone examines the latest interest rate increase announcement from the Reserve Bank.
Treasurer Wayne Swan says he expects the banks not to pass on more than the Reserve Bank's 25-basis-point rise in the cash rate.
The RBA yesterday raised its official cash rate by 25 basis points, or a quarter of a pecentage point, to 3.25 per cent.
"I've made it very clear the Government expects the banks to behave in the way in which they should behave and the way in which they've traditionally behaved - that is, that they will pass on the official cash rate increase and no more," Mr Swan told reporters in Brisbane this morning.
Australia’s big four banks continue to review their standard variable home loan rates after the central bank board's decision yesterday to increase the official cash rate.
Spokespeople from Commonwealth Bank of Australia, ANZ Banking Group, National Australia Bank and Westpac said today their rates were under review.
The big four banks together hold about 85 per cent of Australia’s home loan market, according to Australian Prudential Regulation Authority figures.
CBA, the country’s biggest home loan lender, and NAB both have a standard variable rate at 5.74 per cent, the lowest of the big four banks.
ANZ and number two home loan lender Westpac’s rates are at 5.81 per cent.
Mr Swan said the financial system's stability had enabled Australia to start to emerge from the global crisis.
"It is the case that we've been through a global financial crisis from which we are beginning to emerge and that's a good thing for Australia," he said.
"Australia's performance in the middle of this global recession has been the best of all advanced countries and one of the reasons for that has been the stability in our financial system."
AAP
