Fed: Swan welcomes Wizard rates cut=2

AAP General News (Australia)
08-31-2008
Fed: Swan welcomes Wizard rates cut=2

Eds: reissuing to correct city in takekey



CommSec's chief economist Craig James said rates on fixed term mortgages had been cut
in the last month by the major banks but today's move by Wizard is the first cut to standard
variable rates by a lender.

"They've jumped the gun and it does throw down the gauntlet to the other institutions,"

Mr James said.

"We do think it's almost certain the Reserve Bank will be cutting interest rates on Tuesday.

"Other banks will be following suit. They (Wizard) have garnered a few headlines but
at the end of the day we're going to see a lot of other institutions falling in line."

All of the 17 economists surveyed by AAP last week believe the easing cycle will begin
next Tuesday following the RBA's September meeting.

Most expect the RBA to end a run of 12 successive rate rises and lower the cash rate
by 25 basis points, marking the first cut in almost seven years, or since December 2001.

AAP nl/jt/bwl

KEYWORD: RATES WIZARD SWAN 2 BRISBANE (REOPENS) REISSUING

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