Login
ISCOVER
Staff Reporter
Seconds after National Australia Bank cut its interest rates, the Commonwealth Bank of Australia followed suit.
To continue reading the rest of this article, please log in.
Looking for more benefits? Become a Premium Member.
Create free account to get unlimited news articles and more!
Looking for more benefits? Become a Premium Member.
CBA became the second major to pass on only part of the Reserve Bank’s 25 basis point rate cut.
In a statement from the lender, CBA will cut the interest on its standard variable rate by 20 basis points, taking the new rate to 6.60 per cent.
“In making this decision, the Group has continued to balance the needs of 1.8 million home loan borrowers with those of its 11 million depositors and its shareholders, who include 800,000 Australians who own its shares directly, and millions more Australians who own shares through pension funds,” the statement read.
“One significant factor impacting this balancing of needs has been the increase in the cost of deposits noted in the Reserve Bank of Australia’s most recent Financial Stability Review. This increase, benefitting depositors, has resulted from increased competition for deposits, as Australian banks reduce their reliance on wholesale funding.”
