 Three banks drop rates
The Reserve Bank of Australia today cut rates by one full per cent, and immediately after the announcement three of Australia's largest banks stood up to announce their own rate cuts. A spokesperson for the Commonwealth Bank said the bank would pass on the full rate cut, effective December 12. NAB also announced it would pass on the full rate cut effective December 12, while Westpac said it would cut rates by 80 basis points. Home owners with a $250,000 mortgage will save around $200 per month on mortgage repayments from the full rate cut.
RBA governor Glenn Stevens said the global financial market still seemed fragile.
"With confidence affected by the financial turbulence and a decline in the terms of trade now under way, more cautious behaviour by both households and businesses is likely to see private demand remain subdued in the near term," Mr Stevens said.
Standard variable home loan rates for Commonwealth Bank and NAB will fall to 6.74 per cent. Westpac's standard variable rate will fall to 6.91per cent.
Official interest rates are now at 4.25% which is a six and a half year low, and more cuts are on the way, economists say.
Join the discussion on Commonwealth Bank (CBA)
|