Fed:Homeowners nervously await banks' rate decisions

AAP General News (Australia)
12-03-2009
Fed:Homeowners nervously await banks' rate decisions

Homeowners are nervously awaiting the major banks' lending rate decisions .. after
Westpac jacked up its key home loan rate by nearly double that of Tuesday's official rate
move.

Business has backed the federal government's attack on Westpac .. blaming a lack of
competition in the mortgage market.

Meanwhile .. the opposition's pointing the finger at the government's reckless spending
for the steady rise in official rates.

Westpac lifted its standard variable rate by 45 basis points on Tuesday due to increased
funding pressures .. drawing a stinging attack from Treasurer WAYNE SWAN.

The Reserve Bank had increased its cash rate by only 25 basis points to 3.75 per cent.

The other major banks .. ANZ .. Commonwealth Bank and National Australia Bank .. have
yet to announce their rate decisions.

AAP RTV cb/sb/af/wz

KEYWORD: ECONOMY (CANBERRA)

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