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.

RBA raises cash rate by .25% to 4.0 is a post from: Sydney Mortgage Brokers MortgageCorp

Related posts:

1. RBA raises Interest Rates – .25% At its monthly board meeting the Reserve Bank of Australia...
2. Westpac races ahead as RBA increases rates by 25bps As expected the RBA raised the cash rate by 25bps...
3. ANZ Fixed Rate Home Loan in a Company name How do ANZ Fixed Rate Home Loans (in a Company...

Related posts brought to you by Yet Another Related Posts Plugin.

Its probably fair to say that many of the banks have Gail Kelly and Westpac to thank for leading the way and doing what the vast majority of them would never have dared to to do on their own.

Single handedly she has scored many Australian Bankers their bonus for the year by taking the lead and the heat whilst most of the others who raised their rates by similar levels have slipped quietly past without a murmur.

This rate rise was different to many of the past rate rises, instead of blanket changes by all the banks on the Tuesday as soon as the RBA announced their change, only Westpac announced changes on the Tuesday, the remainder of the big 4 banks announcing their rises 1-5 days after the RBA announcement and even now we are seeing smaller banks 10 days later announcing their changes.

A summary of the rate rises

• Westpac .45%
• Commonwealth Bank .37%
• National Australia Bank .25%
• HomeLoans Limited .25%
• ING .35%
• St George Bank .39% for most products .44% for Basic Home Loan Promotion
• Adelaide Bank .10% – aggressive pricing
• Suncorp .39%
• ANZ .35%
• AMP .30%

All you bankers should be raising your glasses to Gail this Christmas, after all she did help pay for the Bolly

Bankers must be silently thanking Westpac’s Gail Kelly for their Christmas bonus is a post from: Sydney Mortgage Brokers MortgageCorp

Related posts:

1. Westpac races ahead as RBA increases rates by 25bps As expected the RBA raised the cash rate by 25bps...
2. Commonwealth Bank, Westpac and ANZ all raise variable rates Following on from the RBA .25% rate rise on Tuesday...
3. RBA raises Interest Rates – .25% At its monthly board meeting the Reserve Bank of Australia...

Related posts brought to you by Yet Another Related Posts Plugin.

Whilst commentators will criticize Westpac for this, its interesting to note, it would appear that costs of funds is increasing, certainly competition for deposits is hotting up with many banks offering rates close to standard mortgage rates in order to fix depositors in to long terms.

Its obvious to me that if one of the major banks can raise rates without fear of their competitors undercutting them, they have little concern about competition or loss of customers,  Westpac was not the cheapest of the big 4 banks either with their standard variable already more expensive than CBA so it doesn’t appear that they are concerned about being priced at a higher rate than the other banks.

At the time of publishing the ANZ, CBA and NAB had not announced any rises, perhaps they are waiting until the smoke clears until they make their move.

Westpac races ahead as RBA increases rates by 25bps is a post from: Sydney Mortgage Brokers MortgageCorp

Related posts:

1. Commonwealth Bank, Westpac and ANZ all raise variable rates Following on from the RBA .25% rate rise on Tuesday...
2. RAMS increases .35%, St George, Firstmac and AMP raise variable rates Following on from the RBA and the big 4 Banks...
3. NAB sticks to .25% raise but CBA hits borrowers with .37% increase CBA announces a .37% increase on variable rates. Its pretty...

Related posts brought to you by Yet Another Related Posts Plugin.

Mortgagebot Home Loan Comparision Engine

MortgageCorp Australia announces the launch of MortgageBot.com.au Australia’s first true online mortgage broker and home loan comparison engine.

Mortgagebot allows borrowers to calculate the loan payments, Stamp Duty, Lenders Mortgage Insurance and all fees for 25 lenders and 500+ Loans in real time.

“With the Big 4 banks and their sub brands holding 60%+ of the market we felt we had to build MortgageBot because there just wasn’t enough competition or transparency in the Mortgage Market” says Mike Nicholls, CEO of MortgageCorp.”

“No one is sticking up for borrowers anymore. In the last two years the Big 4 Banks have purchased or invested in Aussie, Wizard, St George, Bank West and RAMS. All the guys like John Symonds and Mark Bouris are now strangely quiet”

“We rank the loans based on one thing only, what is the best deal for the customer. There is no bias, favorites or advertising, it’s totally transparent. The rates are updated daily and borrowers can choose to go directly to the lender in question or start their application online with Mortgagebot”

“The big surprise is how many of the smaller bank, building society and non bank lenders consistently appear at the top of the Mortgagebot calculation results which tells you borrowers just aren’t getting the right information”

To try Mortgagebot visit Mortgagebot.com.au

################

MortgageBot was built by MortgageCorp Australia an FBAA Accredited Finance and Mortgage Broker. For further comment or information Mike Nicholls CEO can be contacted at Twitter @MikeNicholls88, mike@mortgagecorp.com.au or (02) 8014 4288 or 0411 222 551

MortgageCorp aims to increase competition – Launches Mortgagebot.com.au Home Loan Comparision Engine is a post from: Sydney Mortgage Brokers MortgageCorp

Related posts:

1. NAB sticks to .25% raise but CBA hits borrowers with .37% increase CBA announces a .37% increase on variable rates. Its pretty...
2. Smart Doc Low Doc Home Loans – Adelaide Bank As part of the SmartSuite product range, SmartDoc provides a...
3. Westpac races ahead as RBA increases rates by 25bps As expected the RBA raised the cash rate by 25bps...

Related posts brought to you by Yet Another Related Posts Plugin.

Depending on the value of the purchase we can arrange either a local banker or a city based pub specialist to work with you.

To discuss your purchase plans please call Mike Nicholls directly on 0411 222 551 or use our contact form for a same business day call back.

Freehold Hotel Finance is a post from: Sydney Mortgage Brokers MortgageCorp

Related posts:

1. Leasehold Pub Finance Leasehold Pub Finance is still available for good deals. MortgageCorp...
2. Low Doc Commercial Finance still available A recent survey of lenders by MortgageCorp has found there...
3. Supermarket Purchase Finance Supermarket Purchase Finance ANZ and IGA recognized the unique business...

Related posts brought to you by Yet Another Related Posts Plugin.

Whilst many banks are reducing pubs in their books we still have lenders that are willing to lend on leasehold pubs.

To discuss your plans please call Mike Nicholls directly on 0411 222 551 or use our contact form for a same business day call back

Leasehold Pub Finance is a post from: Sydney Mortgage Brokers MortgageCorp

Related posts:

1. Freehold Hotel Finance We are still arranging pub finance for good freehold hotel...
2. Low Doc Commercial Finance still available A recent survey of lenders by MortgageCorp has found there...
3. MortgageCorp aims to increase competition – Launches Mortgagebot.com.au Home Loan Comparision Engine Mortgagebot.com.au aims to increase competition in the Mortgage Market. MortgageCorp...

Related posts brought to you by Yet Another Related Posts Plugin.

If you have a challenger loan expiring in the next 6 months please contact us today. We have a number of lenders that are willing and ready to take over the challenger business. The market is tight for commercial funding and to ensure that you are able to complete a refinance before the loan term expires we suggest that you contact us as soon as you are notified that your loan will not be extended.

Call Mike on 0411 222 551 or use our contact form in the sidebar.

Challenger Commercial Loan Refinance is a post from: Sydney Mortgage Brokers MortgageCorp

Related posts:

1. Credit Impaired Commercial and Residential Loans from La Trobe La Trobe currently has Private Funds for Credit Impaired loans...
2. ANZ Commercial Bill A Short or Long-term Answer for Major Cash Needs Often...
3. ANZ Interest-in-Advance Residential Investment Loan for property investors ANZ Interest-in-Advance Residential Investment Loan for property investors This loan...

Related posts brought to you by Yet Another Related Posts Plugin.

Whilst St George, FirstMac and AMP have simply passed on the .25%, RAMs has gone slightly further and increased their rate .35%. Whilst its clearly a sign of funding pressure RAMs has been consistently lower than their competitors.

RAMS increases .35%, St George, Firstmac and AMP raise variable rates is a post from: Sydney Mortgage Brokers MortgageCorp

Related posts:

1. Westpac races ahead as RBA increases rates by 25bps As expected the RBA raised the cash rate by 25bps...
2. Commonwealth Bank, Westpac and ANZ all raise variable rates Following on from the RBA .25% rate rise on Tuesday...
3. NAB sticks to .25% raise but CBA hits borrowers with .37% increase CBA announces a .37% increase on variable rates. Its pretty...

Related posts brought to you by Yet Another Related Posts Plugin.

ING announces .25% increase to variable rate loans is a post from: Sydney Mortgage Brokers MortgageCorp

Related posts:

1. Commonwealth Bank, Westpac and ANZ all raise variable rates Following on from the RBA .25% rate rise on Tuesday...
2. NAB sticks to .25% raise but CBA hits borrowers with .37% increase CBA announces a .37% increase on variable rates. Its pretty...
3. MortgageCorp aims to increase competition – Launches Mortgagebot.com.au Home Loan Comparision Engine Mortgagebot.com.au aims to increase competition in the Mortgage Market. MortgageCorp...

Related posts brought to you by Yet Another Related Posts Plugin.

The ANZ will increase the standard variable mortgage rate for new and existing customers by the full 25 basis points from October 12, bringing the rate to 6.06 per cent.

NAB’s rate will rise by the same amount to 5.99 per cent. Westpac’s rate will increase a quarter of a percentage to 6.06 per cent from Monday.

Note that there are the standard variable rates, increasingly banks will offer better deals than the Standard Variable rate to attract customers with good incomes, assets and credit ratings.

Commonwealth Bank, Westpac and ANZ all raise variable rates is a post from: Sydney Mortgage Brokers MortgageCorp

Related posts:

1. Westpac races ahead as RBA increases rates by 25bps As expected the RBA raised the cash rate by 25bps...
2. RAMS increases .35%, St George, Firstmac and AMP raise variable rates Following on from the RBA and the big 4 Banks...
3. NAB sticks to .25% raise but CBA hits borrowers with .37% increase CBA announces a .37% increase on variable rates. Its pretty...

Related posts brought to you by Yet Another Related Posts Plugin.