2 big Australian banks cut fixed mortgage rates

[SYDNEY] Two of Australia's biggest banks cut their fixed-rate home loans yesterday in a move analysts said reflected lower borrowing costs and expectations that the Reserve Bank of Australia will keep rates at record lows.

Commonwealth Bank of Australia (CBA), the country's biggest lender by market value, said that it will offer a five-year fixed-rate home loan at 4.99 per cent, its lowest ever.

National Australia Bank (NAB) quickly matched the rate, its lowest in 20 years, cutting its five-year rate by as much as 70 basis points, effective tomorrow. NAB has also cut three and four year fixed rates, it said.