The RBA’s second 0.25% rate in two months had a predictable impact on bank share prices – down they went, taking the ASX 200 with them.
The fall in the shares of the big four wiped a collective 21.8 points on Tuesday from the ASX 200 which fell from around 29 points higher to be up just 5.1%, at the close.
Commonwealth Bank shares fell 1.5% to $81.05, Westpac shares lost 1.6% to $27.93, ANZ closed 1.5% lower at $27.87 and NAB dropped to 1.2%, to $26.49.
Smaller lenders didn’t escape the sell down.
Shares in Bendigo and Adelaide Bank dropped 1% to $11.39 and Bank of Queensland shares lost 0.6% to end at $9.45.
Macquarie Group shares slipped by just 0.1%to $127.12 as investors saw it as being better placed to withstand the pressure on profit margins from rate cuts on housing loans.
Last night the NAB joined the Commonwealth in only passing on 0.19% of the 0.25% cut from the RBA.
The NAB’s Chief Customer Officer Consumer Banking, Mike Baird said in a statement:
“In making this decision, we have also considered our customers who rely on income from deposits, including farmers and growing numbers of retirees, as well as those wanting to build their savings.”
“For any changes to interest rates on savings accounts following today’s RBA cash rate announcement, NAB will not decrease rates by more than 19 basis points,” he added.
