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Interest rate change announcement

Interest rate change announcement

Interest rate change announcement

July 2019 Reserve Bank announcement

Date – 16/07/2019

Following a reduction to the official cash rate announced by the Reserve Bank of Australia at the July Board meeting, WAW will make the following changes:
  • All our existing variable home loan rates will be reduced by 0.15%, effective from 13 August 2019
  • Our existing commercial loan rates will be reduced by at least 0.15%, effective from 13 August 2019.

The effective date for new loans will be 22 July 2019.  

This decision follows a reduction in June and leaves the cash rate at a record low of 1.00% following a view by the Central Bank that further easing of monetary policy was required to  support employment growth and provide greater confidence that inflation will be consistent with the medium-term target range.

WAW’s decision sees the organisation’s Standard Variable Rate remain well below that of the major and regional banks in Australia at just 4.63%. It also supports the organisation in continuing to offer competitive term investment and on-call savings rates to thousands of depositors that are impacted by this low rate environment. 

A critical consideration in this latest decision was that many of WAW’s competitors passed on increases to loan rates on several occasions throughout 2018 and early 2019, outside of any official cash rate announcement. WAW’s decision to maintain our interest rate settings on loans during that time saved a considerable amount of interest, in aggregate, for our borrowers.

WAW has also resisted market changes that saw material and wide-ranging decreases to savings and term deposit rates for investors and savers in the lead up to the RBA decision in June. 

WAW CEO Michael Mack said that “while we understand that some borrowers may be disappointed in the decision to not pass on the full reduction to their loans, it is equally important for us to try and balance the benefits that this rate reduction has provided to borrowers, with the negative impact that the same reduction has had on thousands of our deposit customers. In this way, we feel that WAW maintains a strong proposition with competitive rates across our loan and deposit products for many customers throughout our local region”.