National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) both cut interest rates for borrowers today.
The Reserve Bank of Australia is Australia’s central bank. One of its biggest roles is to decide Australia’s interest rate, taking into account economic conditions including unemployment, inflation and the housing market. The RBA interest rate has a ripple effect across the whole economy.
What Happened Today?
The RBA decided to cut interest rates by 0.25% to 1.25% today. Australia and New Zealand Banking Group (ASX: ANZ) did not pass on the full interest rate, instead only passing on 0.18%, but Commonwealth Bank of Australia (ASX: CBA) did pass on the full rate cut.
The other two major ASX banks then announced what they’re going to do. National Australia Bank Ltd (ASX: NAB) also decided to cut its interest rate by 0.25% but Westpac Banking Corp (ASX: WBC) only passed on 0.20% of the rate cut.
Westpac and ANZ stand apart by trying to boost their bottom line. Borrowers and politicians may react to the less-than-full rate cuts negatively. Time will tell what happens and if they lose market share.
Here are 3 stocks I own in April 2020...
Amidst the COVID-19 confusion, there are some companies still growing FAST (think: online meetings through Zoom, streaming companies like Netflix and eHealth services provided by Teledoc).
While the world grapples with COVID-19, some companies are still growing rapidly. The entire cloud computing market is valued around $US210 billion but if you ask me, it seems clear as day that this market is only going to get bigger in 2020 and beyond.
That's why our top investment analyst has just identified 3 growth stocks in a net cash position, with strong competitive forces... and obvious tailwinds at their back. He owns all three of them right now!
Claim a FREE investing report on our analyst's "3 best share ideas for the cloud revolution" when you create a free Rask Australia account.
Our report is 100% free and unlocks hundreds of hours of bonus content.
Disclaimer and warning: The information on this website is general financial advice only. That means, the advice does not take into account your objectives, financial situation or needs. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. Please read our Terms of Service and Financial Services Guide before using this website.
At the time of publishing, Jaz does not have a financial interest in any of the companies mentioned.