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ISCOVER
Jessica Darnbrough
One of Australia’s banks may look to cut its rates again as early as this week.
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Speaking to The Adviser, Citibank’s Matt Wood said Citibank was aggressively competing for a greater share of the mortgage market and would do whatever it could to grow its “slice of the pie”.
“We look at our fixed rates every Thursday. On Friday last week, the yield curve reduced another five to 10 points. So, depending on where this stabilises, we could look at our rates again this week and see if there is an opportunity to trim our fixed rates further still,” he said.
Earlier this week, Citibank announced it would cut up to 34 basis points from its fixed rate product suite, taking its three year rate to just 6.45 per cent.
The lender has slashed more than 75 basis points from its fixed rate products so far this month and, by all accounts, the bank is not afraid to cut more in order to stay ahead of the competition.
But while Citibank continues to aggressively compete for market share, Mr Wood said the lender remains realistic in its expectations.
“Citibank will never have a 5 or 6 per cent share of the market. But, we would like to have a 1 per cent slice and then grow from there. We are working hard at the moment to grow our share and are actively listening to our broker partners.”
