ASX Slips as Bendigo Bank Passes on Rate Cut

The Australian share market is trading lower in its final session of the week. Bendigo Bank has joined other lenders in passing on the RBA’s rate cut to borrowers, easing financial pressure. Despite the ASX slipping, the Australian dollar has gained some momentum. Analysts are assessing the impact of these changes on banking, retail, and commodities. Bendigo Bank’s move may reduce borrowing costs but could pressure bank margins. Investors are also monitoring global market trends and interest rate movements. Economic uncertainty continues to influence investment sentiment. Financial experts provide real-time updates through a live blog. Readers are reminded to seek professional advice before making investment decisions.

CONTENT:

• ASX Slips as Bendigo Bank Passes on RBA Rate Cut; Aussie Dollar Gains

ASX Slips as Bendigo Bank Passes on Rate Cut

Bendigo Bank has announced it will pass on the Reserve Bank of Australia’s (RBA) recent interest rate cut to borrowers, reducing home loan rates by 0.25% per annum starting March 7, 2025. Meanwhile, the Australian stock market slipped on Friday, with the ASX 200 closing down 0.32% at 8,296 points.

Among the best-performing stocks were Nine Entertainment (+20.14%), Telix Pharmaceuticals (+13.83%), and QBE Insurance (+3.04%). On the other hand, Guzman Y Gomez (-14.25%), REA Group (-11.36%), and News Corp (-6.46%) were the day’s worst performers.

Economists are analyzing the RBA’s stance on rate cuts, with AMP’s chief economist Shane Oliver highlighting the central bank’s cautious approach. He noted that the RBA aims to avoid being “late” in adjusting rates, learning from past experiences. Concerns remain about the tight labor market, though slowing wage growth suggests the situation may not be as problematic as initially feared.

Other key financial updates include the ongoing challenges faced by cash transport company Armaguard and discussions around excessive card payment surcharges. Meanwhile, the Australian dollar has strengthened slightly, influenced by positive US-China trade sentiment and strong commodity prices.

Finally, Australia’s unemployment rate edged up to 4.1% in January, though participation in the labor market remains at record levels. Some job seekers compare the hiring process to online dating, describing how recruiters often “swipe left” on candidates.

ASX Slips as Bendigo Bank Passes on RBA Rate Cut; Aussie Dollar Gains

The Australian share market is experiencing a decline in its final trading session of the week. Meanwhile, Bendigo Bank has joined other lenders in passing on the Reserve Bank of Australia’s (RBA) recent rate cut to borrowers. This move follows a series of monetary policy adjustments aimed at easing financial pressure on households and businesses.

Throughout the day, financial experts and business reporters are providing real-time updates and analysis on key market movements and economic trends via a live blog. Investors are closely watching developments in the stock market, currency fluctuations, and banking sector responses to interest rate changes.

Despite the ASX slipping, the Australian dollar has shown some upward momentum, reflecting broader market dynamics. Analysts continue to assess how these shifts impact various sectors, including banking, retail, and commodities. The broader economic outlook remains a topic of debate, as policymakers balance inflation control with measures to support growth.

Bendigo Bank’s decision to pass on the RBA’s rate cut is expected to provide relief to borrowers by reducing mortgage and loan repayments. However, banks’ lending margins could face pressure, affecting profitability. Other financial institutions are also likely to follow suit, as competition in the lending market remains high.

Investors are also reacting to global economic trends, including developments in the US and European markets. Factors such as interest rate movements by the Federal Reserve, geopolitical tensions, and commodity price fluctuations continue to shape investment sentiment. The ongoing volatility underscores the need for diversified investment strategies.