The National Australia Bank is also passing on the full interest rate cut to home owners. NAB's standard variable mortgage rate will drop to 5.74 per cent on February 13.
Yesterday Westpac and ANZ announced 1 per cent cuts and this morning the CBA also announced a cut of 1 per cent to home loans.
However, like the other banks, NAB have said they were happy to be able to pass on this rate cut in full but could not promise any future cuts to mortgage rates.
"We demonstrated this in December when we passed on a full one per cent interest rate decrease to our standard variable rate home loan customers and I'm pleased we have been able to do that again this month," NAB executive general manager Lisa Gray said.
"It is important to acknowledge, however, these latest rate cuts have come at a time when our funding costs are at very high levels and we may not be in a position to pass on full rate cuts in the future.
"We also expect to see the large gap that currently exists between some of the major banks home loan rates to close in the short term."
Yesterday the Reserve Bank of Australia slashed official interest rates by 100 basis points to 3.25% and is the fifth consecutive rate cut since September last year.
The cash rate is at it's lowest level since 1964 and the decision came on the same day the government announced a second round stimulus package aimed at reviving the local economy.
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