Tue, 2010-11-02 19:45
Today the RBA, Reserve Bank of Australia announced that they were lifting the official cash rate by 0.25%.
The official RBA media release is available at the RBA website 2 November 2010 RBA media release.
Inerestingly the Commonwealth Bank also announced today that they were increasing their inerest rates for home loans by up to 0.45%.
Following interest rate increases almost a year ago which placed Commonwealth Bank home loan rates above competitors, Commonwealth introduced minimum volume requirements for brokers. It could be argued that a broker might not be doing the right thing if these volume requirements were met while less expensive home loan options were available. To become "reacreddited with Commonwealth Bank brokers who did not meet these minimum requirements were required to pay Commonwealth to re attend training. Ability Finance who had previously strongly supported Commonwealth Bank decided this was not worth the effort, time or cost, especially while there were more competetive options available.
Todays move by Commonwealth reinforce the decision.