MaxyNews

April RBA Statement on Australian Interest Rates

2010-04-06T14:35:00.001+10:00

Statement by Reserve Bank Governor Glenn Stevens after 25 Basis Point Interest Rate Rise in April

Statement by Glenn Stevens, Governor: Monetary Policy Decision

At its meeting today, the Board decided to raise the cash rate by 25 basis points to 4.25 per cent, effective 7 April 2010.

The global economy is growing, and world GDP is expected to rise at close to trend pace in 2010 and 2011. The expansion is still hesitant in the major countries, due to the continuing legacy of the financial crisis, resulting in ongoing excess capacity. In Asia, where financial sectors are not impaired, growth has continued to be quite strong, contributing to pressure on prices for raw materials. The authorities in several countries outside the major industrial economies have now started to reduce the degree of stimulus to their economies.

Global financial markets are functioning much better than they were a year ago and the extraordinary support from governments and central banks is gradually being wound back. Credit conditions remain difficult in some major countries as banks continue to face loan losses associated with the period of economic weakness. The concerns regarding some sovereigns appear to have been contained at this stage.

Australia’s terms of trade are rising, adding to incomes and fostering a build-up in investment in the resources sector. Under these conditions, output growth over the year ahead is likely to exceed that seen last year, even though the effects of earlier expansionary policy measures will be diminishing. The rate of unemployment appears to have peaked at a much lower level than earlier expected. The process of business sector de-leveraging is moderating, with the pace of the decline in business credit lessening and indications that lenders are starting to become more willing to lend to some borrowers. Credit for housing has been expanding at a solid pace. New loan approvals for housing have moderated over recent months as interest rates have risen and the impact of large grants to first-home buyers has tailed off. Nonetheless, at this point the market for established dwellings is still characterised by considerable buoyancy, with prices continuing to increase in the early part of 2010.

Inflation has, as expected, declined in underlying terms from its peak in 2008, helped by a noticeable slowing in private-sector labour costs during 2009, the rise in the exchange rate and the earlier period of slower growth in demand. CPI inflation has risen somewhat recently as temporary factors that had been holding it to quite low rates are now abating. Inflation is expected to be consistent with the target in 2010.

With the risk of serious economic contraction in Australia having passed some time ago, the Board has been lessening the degree of monetary stimulus that was put in place when the outlook appeared to be much weaker. Lenders have generally raised rates a little more than the cash rate.

Interest rates to most borrowers nonetheless have been somewhat lower than average. The Board judges that with growth likely to be around trend and inflation close to target over the coming year, it is appropriate for interest rates to be closer to average. Today’s decision is a further step in that process.

RBA Interest Rates Rise 25 Basis Points in April

2010-04-06T14:27:00.007+10:00

Reserve Bank Increases Interest Rates by Quarter Percent in April

The Reserve Bank has hiked interest rates by a quarter of one percent or 25 basis points at their April board meeting. The latest rise brings the cash rate to 4.25%. This rise is the second in a row for the RBA, after raising rates by 25 basis points in April as well as three consecutive rises of the same amount in the last 3 months of 2009.

Standard variable home loan rates for most of the major banks will now rise to over 7%. The National Australia Bank is the only one of the majors to confirm that it wont lift rates any higher than the move by the RBA. No comment is yet in from the ANZ, Commonwealth or Westpac Banks.

The RBA has moved to deal with growing confidence in the Australian economy and fears of rising inflation and steady growth in the property market. In the statement from Reserve Governor Glenn Stevens said that "The Board judges that with growth likely to be around trend and inflation close to target over the coming year, it is appropriate for interest rates to be closer to average. Today’s decision is a further step in that process."

Governor Glenn Stevens has pointed to more interest rate rises over the course of 2010. Commentators have suggested that they believe the cash rate will be closer to 5% or even greater by the end of the year.

New Home Buyers Suffer Financial Mortgage Stress

2010-03-12T03:21:00.004+11:00

Research Points To New Home Buyers Under Financial Pressure - Higher Interest Rates Could Hurt - More Pain to Come

Recent research by financial analyst Fujitsu Australia has indicated that despite the booming local economy and low unemployment, financial stress for new home buyers is on the rise. This research comes just a week after the RBA kicked up interest rates by 25 basis points or one quarter of one percent.

Fujitsu research found that there were 581,000 households who were suffering from mortgage stress in Australia, which rose .7% in February. But the research suggests that the worst affected households were those who entered the housing market in the last 18 months. Those households were blessed with very low interest rates but also had to cop a significant rise in the prices of property. In 2009 alone, property prices in Australia rose more than 10%.

Mortgage stress is categorised as those households who are behind on repayments, have used credit cards to pay their mortgage or have refinanced their loan to cope with repayments.

With the Reserve Bank tipped to increase interest rates a number of times in 2010, the mortgage stress is predicted to get even worse. Fujitsu research suggests that another 100,000 will be under mortgage stress by the end of 2010.

Bendigo Bank Armed Robbery in Mirboo North

2010-03-11T23:28:00.003+11:00

Bendigo Bank Armed Robbery in Mirboo North, Gippsland, Victoria

Police are hunting a brazen bandit who committed an armed robbery at the Bendigo Bank in Mirboo North in Gippsland on Thursday afternoon.

The robbery occurred at about 2pm when a man entered the Bendigo Community Bank on Main Street Mirboo North and threatened a female employee with a firearm. The employee was reported to be the only staff member in the bank at the time.

The offender demanded cash and a sum was given to him. He then left the bank and fled the scene in a silver coloured 4WD. The man did not fire any shots in the course of the robbery and there are no reports of any injuries.

Police have released a description of the alleged offender. He is approximately 195 centimetres tall and has a medium sized build. He also has a reddish tinged beard and also some acne scarring.

The vehicle used in the getaway has been described as being similar to a Land Rover Discovery. It was last seen by witnesses heading towards the town on Morwell travelling on the Strzelecki Highway.

Anyone who saw the 4WD or has any other information related to the robbery of the bank is urged to contact Crime Stoppers on 1800 333 000 or visit www.crimestoppers.com.au

Consumer Confidence on the Rise in Australia

2010-03-10T14:38:00.003+11:00

Consumer Sentiment Jumps According to Westpac Bank/Melbourne Institute Survey

Despite a hike in interest rates by the Reserve Bank, consumer confidence lifted in March according to the most recent survey conducted by the Westpac Bank and the Melbourne Institute.

The survey showed a rise in confidence from February to March of .2 per cent. The index was a seasonally adjusted 117.3 points in March compared to 117 points in February. Over the course of the last year, consumer sentiment has risen a massive 37.1 per cent.

The RBA's move to increase the cash rate to 4% has not dampened consumer confidence at all. This is despite the fact that most commentators predict the RBA to hike interest rates a number of times in 2010. The cash rate has now been lifted by 100 basis points or 1 per cent since October 2009.

The standard variable rate for most of the major banks is heading close to 7%. The National Australia Bank leads the field of the majors with the lowest standard variable interest rate.

RBA Statement on March Interest Rates Increase

2010-03-02T14:35:00.003+11:00

Australian Interest Rates Rise in March - Statement by Reserve Bank Governor Glenn Stevens

Published below is the full statement by Reserve Bank of Australia Governor Glenn Stevens after the March 2010 rise in Interest Rates by 25 basis points. The rise takes the cash rate to 4%. Banks standard variable rates will likely hit around 7% in coming days.

RBA Statement

At its meeting today, the Board decided to raise the cash rate by 25 basis points to 4.0 per cent, effective 3 March 2010.

The global economy is growing, and world GDP is expected to rise at close to trend pace in 2010 and 2011. The expansion is still hesitant in the major countries, due to the continuing legacy of the financial crisis, resulting in ongoing excess capacity. In Asia, where financial sectors are not impaired, growth has continued to be quite strong. The authorities in some countries are now seeking to reduce the degree of stimulus to their economies.

Global financial markets are functioning much better than they were a year ago and the extraordinary support from governments and central banks is gradually being wound back. Credit conditions remain difficult in some major countries as banks continue to face loan losses associated with the period of economic weakness. Concerns regarding some sovereigns remain elevated.

In Australia, economic conditions in 2009 were stronger than expected, after a mild downturn a year ago. The rate of unemployment appears to have peaked at a much lower level than earlier expected. Labour market data and a range of business surveys suggest growth in the economy may have already been at or close to trend for a few months. There are some signs that the process of business sector de-leveraging is moderating, with the pace of decline in business credit lessening and indications that lenders are starting to become more willing to lend to some borrowers. Investment in the resources sector is very strong. Credit for housing has been expanding at a solid pace, and dwelling prices have risen significantly over the past year. New loan approvals for housing have moderated a little over recent months, however, as interest rates have risen and the impact of large grants to first-home buyers has tailed off.

Inflation has, as expected, declined in underlying terms from its peak in 2008, helped by the fall in commodity prices at the end of 2008, a noticeable slowing in private-sector labour costs during 2009, the rise in the exchange rate and the earlier period of slower growth in demand. CPI inflation has risen somewhat recently as temporary factors that had been holding it to unusually low rates are now abating. Inflation is expected to be consistent with the target in 2010.

With the risk of serious economic contraction in Australia having passed, the Board moved late last year to lessen the degree of monetary stimulus that had been put in place when the outlook appeared to be much weaker. Lenders generally raised rates a little more than the cash rate and most loan rates rose by close to a percentage point.

Interest rates to most borrowers nonetheless remain lower than average. The Board judges that with growth likely to be close to trend and inflation close to target over the coming year, it is appropriate for interest rates to be closer to average. Today’s decision is a further step in that process.

Australian Interest Rates Rise Quarter Percent March

2010-03-02T14:09:00.004+11:00

Australia Monetary Policy Decision - RBA Raise Interest Rates by 25 Basis Points - One Quarter of One Percent

The Reserve Bank of Australia has cited concerns with inflation and the skyrocketing housing market in their decision to bump up interest rates by 25 basis points after their March meeting.

The RBA surprised the market in February by leaving interest rates on hold, having risen rates three times in the last three months of 2009. But in their February announcement, the RBA warned of more rate hikes to come in 2010.

This quarter percent rise will push the cash rate to 4%, and will lift most banks standard variable rate to around the 7%.

It is likely that banks will move quickly to adjust their standard variable rates and pass on the rate rise to consumers. The National Australia Bank is the only one of the four majors to guarantee that they wont move their standard rate any higher than the RBA's quarter percent rise.

Economists and commentators will now be awaiting the minutes of the Reserve Bank meeting to predict what might happen with interest rates in April.

Armed Robbery Attempt on ANZ Bank

2010-02-26T04:08:00.004+11:00

Attempted Armed Holdup of ANZ Bank in Upper Ferntree Gully, Melbourne - Bank Security Screens Foil Robbery

A man was foiled by bank security shutters when he attempted to rob the ANZ bank in upper Ferntree Gully on Thursday Afternoon.

A man entered the ANZ bank branch on Burwood Highway at about 4.30pm Thursday wearing an Essendon beanie and a pair of sunglasses. He approached a bank teller and produced a knife and handed over a bag.

Another bank teller who witnessed the incident activated the security screen. The offender was then prevented from any contact with staff. He then left the bank and fled east.

Anyone who witnessed the attempted robbery on the bank or who has any other information is asked to contact Crime Stoppers on 1800 333 000

Commonwealth Bank Shares February 2010 Dividend

2010-02-10T00:16:00.005+11:00

Bank Profits Soar - February Commonwealth Bank Shares Dividend Rise for Half Year Ending December 2009

The Commonwealth Bank is set for big jump in its half yearly dividend despite the global financial crisis and the board previously suggesting that higher rewards for shareholders could not be guaranteed.

Update: 2009 Last Half Dividend is $1.20.

The dividend for the half year ending 31 December 2009 is predicted to be as high as $1.40, far eclipsing the previous half year payout which was capped at $1.15 - the same dividend issued in December 2007.

Profits at the Commonwealth Bank have soared, coming in around $2.9 billion for the half year. That represents a 45% increase in post tax earnings, or about $900 million.

But the profits have had to be shared further thanks to capital raising's at the bank. Since the start of 2009 calendar year, the Commonwealth Bank has issues about 100 million new shares.

The expected dividend for the last half of 2009 will still likely be below the $1.53 given to shareholders in June 2008.

News Macquarie Bank Miranda Kerr Banker Prank Video

2010-02-03T17:41:00.005+11:00

Seven News Live Cross to Macquarie Bank Miranda Kerr Picture Video - Now Labelled an Office Prank Gone Wrong

It has made headlines around the world. During a live cross to Seven News on Tuesday, a banker in the background can be seen viewing photos of Miranda Kerr - shots that were taken for a GQ Magazine shoot. The photos themselves weren't news - they were all over the Internet on Tuesday. But looking at them on work time while on live TV probably wasn't a good look.

However, it has since been revealed that the man may have been the victim of an inter office prank gone wrong. It has been reported that the man viewing the photos was sent an email marked "urgent" which contained the photos. At the bottom of the screen were the word "Now Turn Around" - which is what he did at the end of the live cross.

There has been no comment from Macquarie Bank on whether any of the employees will be disciplined.

Major Rise in Australian Business Conditions

2010-02-03T04:07:00.002+11:00

Survey Predicts Major Rise in Business Conditions in Australia

A business expectations survey by the Commonwealth Bank and Australian Chamber of Commerce and Industry has shown a growth in conditions for the December quarter. The survey showed a growth in the general business conditions index from 49.4 in the previous quarter to 56.0 for the December quarter.

It was the best result for the survey since the first quarter of 2008. And the prediction is for the survey to jump to 65.9 in the March quarter. However, while profits rose, investment in the construction and building sector still remains negative.

A monthly survey by the National Australia into business confidence showed an 11 point fall for December, attributed mainly to interest rates. But in a positive sign for the economy, the bank has tipped a growth rate of 1% for the December quarter.

RBA Will Raise Australian Interest Rates In March

2010-02-02T14:42:00.002+11:00

Interest Rates in Australia Tipped to Rise in March Reserve Bank Meeting

The ink was barely dry on the Reserve Bank's decision to leave interest rates unchanged for February when economists and commentators hit the airwaves to declare a rate rise for the March RBA meeting.

By all accounts, the commentators could be right. According to the RBA statement explaining the decision to leave rates on hold, they wont hesitate to lift the official cash rate if they feel the economy has the potential of overheating.

Glenn Stevens statement released at 2.30pm on Tuesday said that "If economic conditions evolve broadly as expected, the Board considers it likely that monetary policy will, over time, need to be adjusted further in order to ensure that inflation remains consistent with the target over the medium term."

That could mean a healthy dose of interest rate rises for the remainder of 2010. The latest inflation figures show a worrying upward trend, particularly in the underlying inflation measure. That latter figure is the one the RBA pays closest attention to.

But not only that, the housing market is showing signs of a growing boom. Some have even called it a bubble. With unemployment heading in a downward direction as well, the RBA are likely to pounce in March according to economists. At this stage, the prediction for March is for a 25 basis point rise, or one quarter of one percent.

Commentators and economists views are mixed on the amount of interest rate rises for 2010, but most predict at least a 1% lift from their current position. The cash rate is currently at 3.75%.

Interest Rates on Hold in Australia February

2010-02-02T14:30:00.006+11:00

No Increase - RBA Leaves Interest Rates on Hold In February - Cash Rate Stays at 3.75% - But Warns of Rises to Come

The Reserve Bank of Australia has defied the predictions of most economic commentators by leaving Interest Rates on hold in February.

The RBA has considered that previous hikes by banks on top of the official movement to the cash rate may have been enough to keep the economy in check for now. The RBA is therefore waiting to see what impact their previous three rises had on the Australian economy.

However, the RBA issued a warning that there are more interest rate rises to come, suggesting that "Interest rates to most borrowers nonetheless remain lower than average" and if "economic conditions evolve broadly as expected, the Board considers it likely that monetary policy will...need to be adjusted further in order to ensure that inflation remains consistent with the target..."

In a statement released on Tuesday afternoon, Reserve Bank Governor Glenn Stevens said that "With the risk of serious economic contraction in Australia having passed, the Board had moved at recent meetings to lessen the degree of monetary stimulus that was put in place when the outlook appeared to be much weaker, he said

"Lenders have generally raised rates a little more than the cash rate over recent months and most loan rates have risen by close to a percentage point. Since information about the early impact of those changes is still limited, the Board judged it appropriate to hold a steady setting of monetary policy for the time being."

No More Rise - NAB Wont Raise Interest Rates Above RBA

2010-02-02T05:45:00.005+11:00

National Australia Bank Rules Out Increase to Interest Rates Above RBA Decision

The NAB has stood alone amongst the four major banks in Australia, ruling out a rise above any interest rate decision by the RBA. If the Reserve Bank moves to lift rates by 25 basis points or a quarter of one percent, the NAB have guaranteed that they will not move their standard variable rate above that amount.

The NAB's current standard variable rate stands at 6.49%, making it the cheapest of the major lenders in Australia. The most expensive of the four banks is Westpac, whose standard rate is 6.76%. Westpac defied the trend in December, lifting its interest rates by 45 basis points despite the RBA lifting the cash rate by only 25 basis points.

The other major banks, Commonwealth, the ANZ and Westpac are yet to confirm if they will match the commitment from the NAB.

The RBA is widely tipped to lift interest rates by a quarter of one percent in their February meeting. It will be their fourth consecutive rise of interest rates, bringing the official cash rate to 4%.

Home Loans Fall In Australian Housing Market

2010-02-01T17:13:00.002+11:00

Interest Rate Rises - Mortgage Brokers Claim Steep Decline in New Home Loans

The jump in interest rates in the last few months of 2009 has led to a decline in the amount of loans written by Australia's largest mortgage broker in December.

The Australian Finance Group has said that potential home buyers are sitting on the sidelines thanks to the three consecutive rate hikes by the RBA, the last of which came in December.

AFG has said that their sales hit a five year low in December when it sold just $1.5 billion worth of loans. This was a four month consecutive fall in sales. In September before the reduction to the first home owners grant boost and the start of the rate rises in October, AFG sold about $2.9 billion worth of home loans.

The fall in sales for AFG led to their worst result since January 2005. But they aren't blaming the Global Financial crisis. They point to the uncertainty over future rises in interest rates as the main concern, considering that they are spooking potential home buyers out of the market.

Interest rates are widely tipped to increase significantly in 2010, with some commentators predicting at least a 1% rise, commencing with a .25% rise in February.

Westpac Bank Online Investing Trading Website

2010-02-01T15:55:00.004+11:00

Westpac Bank Upgrades Online Investing Platform - Growth Tipped

Westpac Bank has followed the lead of other online broker providers in upgrading its trading platform. Westpac expects that their customer base will increase by 8% in 2010.

The bank currently has 250,000 broking customers who now stand to benefit from new features which include better home page customisation, more detailed research and upgraded technical charting tools.

Westpac believes that the most recent upgrade will be a market leader, with no other platform offering all the similar features.

The number of active online traders in Australia is estimated to be about 600,000, with the number steadily growing.

The Macquarie Group's online trading system was upgraded in 2009 the Commonwealth Bank has moves in place to upgrade Commsec which is one of the market leaders in broking.

Westpac Leads Banks on Home Loans

2010-02-01T15:54:00.002+11:00

Westpac Ahead of the Pack on Bank Issued Home Loans in Australia - Major Four Banks Take 95% Share of Owner Occupier Loans

Despite the fact that Westpac jacked up their variable interest rates by 45 basis points last month - 20 basis points above the RBA rise - they still dominated the home loan market in Australia in December.

Westpac and their fully owned subsidiary St George Bank held 42% of all the loans issued to owner occupiers in December. However, it is believed that most of the loans issued were already in the pipeline before Westpac became the most expensive lender of the four major banks. The standard variable rate on offer from Westpac was 6.76%, a quarter of one percent higher than competitor the NAB at 6.49%.

The value of the loans issued by Westpac in December was $3.2 billion compared with $2.8 billion for the Commonwealth Bank, $900 million for the ANZ and $836 million by the NAB.

Although loans were expected to move to other lenders due to their higher variable rate, executives at Westpac believe that their home loan sales are holding up in January.

But in a worrying sign of a lack of competition in the market, the four major banks accounted for 95% of the home loan market in Australia. Small lenders were severely tested in 2008/2009 as a result of the global financial crisis and higher funding costs.

The latest figures come from data released by the Australian Prudential Regulation Authority.

Westpac May Not Lift Interest Rates Above RBA Rise

2010-02-01T15:42:00.003+11:00

Interest Rate Rise - Westpac May Keep Rise in Line With Reserve Bank Increase

Nearly every major economic commentator in Australia has tipped the RBA to increase interest rates for the fourth time in a row when they meet in February. A 25 basis point or quarter of one percent rise would bring the cash rate up to 4%.

But leading commentators are also suggesting that the Westpac bank may not lift rates higher than any rise announced by the RBA. And Westpac themselves appear to be hinting the same.

Westpac went out alone in December, announcing a 45 basis point rise to their standard variable interest rate - 20 basis points above the RBA.

For that bold decision, Westpac and its boss Gail Kelly copped major flak in the industry and from the federal government. Consumers were also disappointed, with many suggesting that they would transfer their loans to other lenders.

Westpac now has the highest standard variable rate of the four major banks in Australia. The National Bank of Australia has already announced that it will not lift rates higher than any rise brought in by the RBA.

Adelaide Crows Westpac Training Centre

2010-02-01T15:14:00.002+11:00

Westpac Bank Secures Naming Rights to the Adelaide Crows Training Centre

In a deal similar to the one the Collingwood Football Club has with Lexus, the Adelaide Crows have secured major sponsor Westpac Bank for their new training centre.

The $21 million training facility will be known as the Westpac Centre for at least the next five years. The financial arrangement between Westpac and the club has not been disclosed.

The centre will offer more than just training facilities for the football team. It also has function rooms and a large conference facility, enabling the Adelaide Crows to play a larger role in local business and the community.

The Westpac Bank has been a long term supporter of the Adelaide Crows, being a corporate partner since 1999.

Australian Interest Rates to Rise in February

2010-01-28T02:33:00.002+11:00

Latest Indicators Point to February Interest Rate Rise by the Reserve Bank

The latest inflation figures have all but confirmed an interest rate rise by the RBA when they meet in early February. If the RBA do pull the trigger, it will be their fourth straight rate rise in a row - pushing the official cash rate to at least 4%.

The RBA has previously announced that they will not allow inflation to get out of control in Australia and wont hesitate to use monetary policy to ensure the economy doesn't overheat.

The official inflation figures released on Wednesday show an annualised figure of 2.1% which is up significantly from the 1.3% recorded just 3 months ago. In addition, the underlying figure of inflation which the RBA pays even closer attention to was also up. Both figures were higher than market expectations.

More news from the Westpac Melbourne Institute Leading Index showed the likely pace of economic activity over the next 3 to 9 months was 7.6% far and above the long term trend rate of 3%.

Economists are now tipping a rate rise in February of 25 basis points or one quarter of one percent. That would take the cash rate to 4%, with more rate rises tipped for the remainder of 2010. Banks are likely to pass on most of the rate increases although they have previously suggested that not all of the hike may be passed on, depending on competition and funding costs.

Economists Tip 1% Interest Rate Rise in Australia 2010

2010-01-27T03:10:00.004+11:00

Australian Home Loan Interest Rates Set To Rise By 1% in 2010

Economists are tipping the RBA will raise interest rates by 1% in 2010 in a bid to curb rising inflation and unsustainable growth in Australia. But at least one economist expects that banks may not pass on the full rate rise.

In a response to greater competition in the mortgage market and lower lending costs banks might not pass on about .3% of the interest rate rise according to Access Economics' Chris Richardson.

And some of the major banks in Australia seem to be confirming that theory, with spokespeople from the ANZ and Westpac Banks suggesting that dependent on funding costs, they will be looking to pass on reductions to consumers.

The Reserve Bank meets again in February, where the majority of economists expect they will raise the official cash rate to 4%. But if it doesn't happen in February, which would be the fourth 25 basis points rise in a row, a similar rise in rates is almost a certainty for the RBA's March meeting.

In comparison to the rest of the world economies which contracted about 3.2%, Australia's economy actually grew in 2009.

Commonwealth Bank Branch Mumbai India

2010-01-27T01:45:00.005+11:00

Commonwealth Bank Branch Opening in Mumbai India

Australia's largest financial operation, the Commonwealth Bank will be opening its first branch in Mumbai, India in the second quarter of 2010.

The Reserve Bank of India has given the regulatory approval necessary for the new Commonwealth Bank branch to open.

The Commonwealth Bank has had a representative office in Bangalore since 2005 in an attempt to better understand the Indian market. The new branch in Mumbai is said to be focused on financing trade between Australia, New Zealand and India.

The branch in Bangalore is scheduled to close when the Mumbai bank opens.

Sydney based lender Ravi Kushan was previously announced as heading up the Commonwealth Bank in Mumbai.

Commonwealth Bank Raises Fixed Term Deposit Rates

2010-01-25T16:56:00.010+11:00

Term Deposit Rates on the Rise at Commonwealth Bank

It is perhaps a sign of where they see the long term cash rate heading - up. The Commonwealth bank on Monday announced that it is offering a term deposit rate of 6.00%. That is less than a 1% discount on their standard variable loan rate.

The term deposit rate of 6% applies to deposits of at least $10,000 and a maximum of $500,000.

According to a press release from the Commonwealth Bank, they are "offering Australians the chance to boost their 2010 savings plan with a great term deposit rate of six per cent."

"With more Australians saving with us than any other bank, we are committed to giving new and existing customers competitive offerings that deliver value and a significant fixed return."

Other major banks are yet to indicate if they will match the offer by the Commonwealth.

Speculation is rife that the Reserve Bank will increase the official cash rate for the fourth straight month in a row. That would mean another hike of at least a quarter of one percent for variable loans.