CBA cuts home loan rates to 7.01%
The Commonwealth Bank of Australia (CBA) has cut its standard variable home loan rate by 40 basis points to 7.01 per cent.
The decision on Thursday came two days after the Reserve Bank of Australia announced a surprise 50 basis point cut to the cash rate.
CBA said the new lower rate would take effect on May 11.
A spokesman for the bank said CBA's other lending rates and deposit account rates were under review.
"In making this decision, the group has continued to balance the interests of its 1.8 million home loan borrowers with those of its 11 million depositors, and those of its shareholders, who include 800,000 Australians who own its shares directly, and millions more Australians who own shares through pension funds," the bank said.
CBA's rate cut followed one made by its rival National Australia Bank (NAB) on Wednesday.
NAB cut its variable home loan rates by 0.32 per cent, also less than the RBA's 50 basis point cut on Tuesday.
However, NAB also cut the interest rate for its online savings account iSaver by 0.5 per cent.
Meanwhile, Westpac is keeping tight lipped on any interest rate cuts despite posting a near $3 billion net profit for the first half of its financial year.
Chief financial officer Phil Coffey on Thursday said he would not be commenting on whether the bank would cut its home loan rates.
ANZ is due to make a decision on its lending rates at its monthly meeting on May 11.
The RBA's cash rate now stands at 3.75 per cent.
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