Today we have decided we will reduce variable interest rates for our home loan customers by 0.25pc pa. Importantly, we will apply this reduction across all our variable rate home loans.
It took the pain last time so now it someone else’s go. CBA’s!
In response to the Reserve Bank’s move to cut the cash rate from 1.25 per cent to 1 per cent on Tuesday, Commonwealth Bank announced it would cut the standard variable rate for owner-occupiers and investors paying principal and interest on their mortgage by 0.19 percentage points.
CBA will cut rates for interest-only mortgage-holders by 0.25 percentage points and is expected argue that these customers are more likely to spend the savings and create the economic benefit sought by the Reserve Bank.
The bank has also offered sweeteners to its deposit-holders in a move it argues provides a fair balance between savers and borrowers. It will create a new special five-month term deposit with a 2.2 per cent per annum interest rate and offer a further 0.1 per cent on top for pensioners.
NAB also went 19bps. WBC ponzied up with 20bps for owner-occupiers and 30bps for investors with interest only loans.