CBA cuts rates by 0.4%
THE Commonwealth Bank this morning cut 40 basis points from its standard variable home loan rate.
While the move will come as a welcome relief for the bank's home loan customers, it is still 10 basis points less than the Reserve Bank of Australia's 0.5% cut to the cash rate on Tuesday.
The Commonwealth's variable rate will drop to 7.01% from May 11. The cut will not apply to business loans and credit cards. The bank says it is reviewing its rates on other products, including savings accounts.
It means two of the big four banks have reduced their variable rates since Tuesday.
NAB cut its variable rate by 0.32%, effective tomorrow.
The bank decided to cut 50 basis points from its online savings account to 5%, while it also trimmed 0.25% from its credit card interest rates.
ANZ will review interest rates when it meets on May 11. The bank announced a $2.9 billion half-year profit on Wednesday.
Westpac is yet to announce whether it will cut it interest rates. The bank also announced a near $3 billion half-year profit this morning.
Bank of Queensland was the first lending institution to pass on some interest rate relief - a 0.35% cut - following the RBA's decision.