- CBA cuts variable rates by 40 basis points
- Less than the RBA’s cut of half a per cent
- Big banks hoard rates cut despite pressure
- Westpac profit down 25 per cent to $2.97 billion
THE Commonwealth Bank has cut its variable home loan rates by 40 basis points, less than the RBA’s rate cut.
The decision today came two days after the Reserve Bank of Australia announced a surprise 50 basis point cut to the cash rate at its monthly meeting on Tuesday.
The Commonwealth Bank said it would reduce its standard variable rate on its mortgage accounts, effective from May 11. The cut will also apply to some business loans.
Its new standard variable rate will be 7.01 per cent.
Commonwealth Bank spokesman Steve Batten said rates on other products, including deposit accounts and credit cards, were under review.
National Australia Bank cut its variable home loan rates by 0.32 per cent yesterday.
NAB said it would reduce its standard variable rate on mortgages and business loans, effective from May 4.
The interest rate on NAB’s online savings account iSaver will also drop by 0.5 per cent to 5.0 per cent.
NAB’s consumer credit card interest rates will drop by 0.25 per cent.
ANZ said today it would make its decision on rates at its regular pricing meeting on the second Friday of the month.
Westpac is expected to make an announcement on rates tomorrow.
Bank of Queensland cut its standard variable rate by 0.35 per cent yesterday.