In an attempt to counter slowing growth in the country’s mining sector, the Reserve Bank of Australia announced a decision to lower the cash rate by 25 basis points, effective 8 May 2013.
With a record low of 2.75% the NAB was the first of the big four banks to lower its standard variable home loans. It cut the rate by 25 basis points to 6.13 per cent per annum.
Commonwealth Bank also passed on the full rate cut this afternoon, lowering its standard variable home loan rate to 6.15 per cent with effect from May 13.
Westpac lowered its rates just before 5pm today, bringing its standard variable mortgage rate down by 25 basis points to 6.26 per cent, with effect from May 20.
After NAB and CommBank’s moves to pass on the 0.25 basis point cut in full, Westpac said they had put their interest rates under review. ANZ Bank will make a decision on interest rates on Friday as part of its regular review.
The cut would be welcomed by families and by small businesses and would provide a boost to other areas of the economy and help sustain long-term growth.