Two days after the RBA’s announcement that it will increase the cash rate by 50 basis points, Australia’s four big banks have followed suit, confirming they will raise interest rates by 0.5 percent.
Macquarie Bank, the country’s fifth largest lender, was the first to announce a rate rise within hours of the Reserve Bank decision but the ‘big four’ took their time, with Australia’s largest mortgage holder, the Commonwealth Bank the next to confirm a rise in the variable rate two days later. The other three – ANZ, Westpac and NAB – were quick to follow suit.
While it is unusual for lenders to move slowly, it is not unprecedented. In 2010, three of the big four took between eight to 10 days to raise rates.
In worrying news for savers, it could be an indication that the banks are considering whether to pass the full increase onto their savings customers.
Following the devastation of recent flooding, experts are urging government intervention to drive the cessation of building in areas at risk.
Properties are taking longer to sell and vendor discounting has increased, according to data from CoreLogic. In the three months to July, the median days on market was 32, up from a low of 20 days over the three months to November.
Clearance rates also slowed across the country through July, down to an average of 53.3 per cent by the end of the month.The clearance rate for the equivalent period in 2021 was 74.4 per cent.
However, clearance rates have already seen an improvement in the first week of August, with CoreLogic economist Kaytlin Ezzy reporting that Sydney’s preliminary clearance rate was more than 60 per cent for the first time since late May. That was on the back of the quietest auction week since mid July, with 1,471 homes auctioned across Australia’s combined capital cities.
Sydney offered just 476 homes for auction, down from 624 properties a week earlier.
In other states, Brisbane held 153 auctions, Adelaide had 146 and Canberra 67.