Banks to protect home loans customers against interest rate rises

Friday 02 October 2009

Article by Mozo

Australia’s big banks have committed to keeping interest rates low for home loans customers, it has emerged.

The Daily Telegraph contacted the institutions, including ANZ, Westpac and the National Australia Bank (NAB), which claimed they would not increase their cash rate over that of the Reserve Bank of Australia (RBA).

According to the news provider, this follows a statement from Commonwealth Bank chief executive Ralph Norris who claimed he did not expect any financial centres to increase their rates above the official line, which may be promising news for those looking for low interest home loans.

"Funding costs are still high but there is no pressing need to review the standard variable rate out of cycle at present and we have no plans to do so," a spokesperson for ANZ was quoted as saying.

Meanwhile, the NAB said it would do the same and Westpac claimed it has no plans to raise the standard variable rate above the RBA’s benchmark.

This comes as the RBA recently warned that the country’s high house prices may be deterring people from purchasing property.

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