Aussie “Big Four” banks cut rates, mirroring central bank

AUSTRALIAN “Big Four” lenders cut their interest rates by 25 basis points on Tuesday (Feb 18), in tandem with the central bank cutting its rates for the first time since November 2020.

The Reserve Bank of Australia (RBA) cut its cash rate by 25 basis points to 4.1 per cent, saying progress had been made on inflation, though it remained cautious on further monetary policy easing.

The central bank’s cut was its first move since raising the rate to a 13-year high of 4.35 per cent in November 2023.

Commonwealth Bank of Australia, the country’s largest lender, said the change will be implemented on its eligible business lending products and would be effective from Feb 28.

The National Australia Bank said it would reduce the standard variable home loan interest rate by a quarter point, effective Feb 28.

Westpac, Australia’s oldest lender, also joined the bandwagon and cut its interest rates for home loan and deposit customers.

The home loan interest rate change will be effective from Mar 4, and will be applicable for both its new and existing customers, Westpac said.

ANZ Group said variable interest rates across the lender’s domestic home loans would be reduced by 25 basis points, effective Feb 28.

The country’s No 4 bank also said it was reviewing other interest and deposit rates.

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Australian central bank cuts rates for first time since November 2020

The financials sub-index lost nearly 1 per cent with all the “Big Four” banks dropping. REUTERS