RBA keeps the brakes on
The lack of change is starting to frustrate some people in the financial markets, as well asthe media, who spend a big chunk of their time speculating about Stevens' next move.
However, Womens New Balance Minimus for consumers, what the RBA does is only part of the story. The actual interest rates on home loans and deposits have still changed Buy Air Max substantially in response New Balance Runners to factors that Stevens can't control. And that means it's worth making sure you're not getting a raw deal.
So, how have actual interest rates changed, outside RBA moves?
The bottom line is that rates are getting better if you are in debt, Nike Air Max 2014 Black but less favourable for people with savings in the bank.
First, home loans. Mortgage rates have fallen by about 15 basis points outside the official 25 basis point move since August last year, Stevens told a parliamentary hearing recently. Banks are able to make these cuts because Womens Nike Roshe Run Trainers their cost of funding has fallen to the lowest levels since the global financial crisis, and they're using the windfall to offer new customers competitive deals.
The catch is that these reductions are not being given in equal size to all borrowers, but as discounts to individual customers. A report from JP Morgan and Digital Finance Analytics last week said the average size of these discounts had increased from 75 basis points in late 2012 to about 100 basis points today.
This week's graphic also shows another change that banks are also getting more choosy about who they give discounts to, and how big they are. Some borrowers are getting as much as 1.4 percentage points off the banks' advertised rates, it shows, while others get just 0.3 percentage points. Delving further into the detail, their analysis found the bigger discounts went to people with bigger mortgages. So if you have a home loan especially a big one it may be worthinquiring about discounts from your bank or competitor.
What about deposits? Unfortunately for savers, the interest rates paid on deposits have been getting less attractive. That's because banks don't need to compete as fiercely to get their hands on your money.
One year term deposits have fallen by about 0.4 percentage points, compared Nike Roshe Runs Ebay with the 0.25 percentage point cut from the RBA in the last year.
When rates are falling like this, it can be worth making sure you're not being dudded. Canstar reports that the lowest one year term deposit is paying 2.55 per cent, while the highest offer is 3.65 per cent a significant difference.
All in all, savers are getting a raw deal from the fall in bank funding costs, while borrowers are doing very nicely indeed. This dynamic could continue for a while if bank funding costs continue to drift down.
Given all these changes, customers should be aware that Glenn Stevens' decisions are only one influence on interest rates. Even if he continues to leave rates unchanged, they may be able to get a better deal by seeing what the market has to offer.
The lack of change is starting to frustrate some people in the financial markets, and the media, who spend a big chunk of their time speculating about Stevens' next move.
For consumers, however, what the RBA does is only part of the story.
The actual interest rates on home loans and deposits have still changed substantially in response to factors that Stevens can't control. And that means it's worth making sure you're not getting a raw deal.
So, how have actual interest rates changed, outside RBA moves?
The bottom line is that rates are getting better if you are in debt, but less favourable for people with savings in the bank.
First, home loans. Mortgage rates have fallen by about 15 basis points since August last year, Stevens told a parliamentary hearing recently.
Banks are able to Nike Air Max 90 Womens make these cuts because their cost of funding has fallen to the lowest levels since the global financial crisis and they're using the windfall to offer new customers competitive deals.
The catch is that these reductions are not being given in equal size to all borrowers, but as discounts to individual customers.
A report from JP Morgan and Digital Finance Analytics last week said the average size of these discounts had Nike Stockists Sydney increased from 75 basis points in late 2012 to about 100 basis points today.
This week's graphic also shows another change that banks are also getting more choosy about who they give discounts to, and how big they are.
Some borrowers are getting as much as 1.4 percentage points off the banks' advertised rates, it shows, while others get just 0.3 percentage points.
Delving further into the detail, their analysis found the bigger discounts went to people with bigger mortgages. So if you have a home loan especially a big one it may be worthinquiring about discounts from your bank or competitor.
What about deposits?
Unfortunately for savers, the interest rates paid on deposits have been getting less attractive. That's because banks don't need to compete as fiercely to get their hands on your money.
One year term deposits have fallen by about 0.4 percentage points, compared with the 0.25 percentage point cut from the RBA in the last year.
When rates are falling like this, it can be worth making sure you're not being dudded. Canstar reports that the lowest one year term deposit is paying 2.55 per cent, while the highest offer is 3.65 per cent a significant difference.
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