The Commonwealth Bank has reduced variable rates to their lowest ever level, despite not passing on the entire Reserve Bank rate cut.
CBA’s standard variable rate home loan has been reduced by 20 basis points to 5.45 per cent – the lowest rate offered in the bank’s history.
Matt Comyn, CBA’s group executive of retail banking services, said that while the circumstances of each RBA cash rate decision will always vary, the bank has carefully considered the impact of the current environment and moved to balance its customers’ needs.
“As the nation’s leading home loan provider, [this] reduced mortgage rate is the best we have ever offered, and continues our commitment of providing value to our 1.6 million home loan customers,” he said.
Furthermore, CBA has also has made a 25-basis-point reduction for its residentially-secured small-business loans.
Adam Bennett, CBA’s group executive for business and private banking, said the 25-point reduction recognises the importance of the small-business sector as a key driver of the Australian economy.
“This lower rate should help underpin confidence in small-business owners to continue to invest in equipment, hire additional staff and grow their enterprise," he said.
CBA’s new rate offers will be effective from 13 May.
Meanwhile, ME Bank has passed on the RBA’s full 25-basis-point rate cut to its customers.
Effective from 22 May, the bank’s Standard Home Loan variable interest rate will be reduced to 4.88 per cent, while its member package rate will fall to 4.68 per cent.
[Related: Major bank cuts rates]