Commonwealth Bank cuts standard variable rate by 20 basis points to 6.6%

The Commonwealth Bank has followed NAB by announcing that it will reduce interest rates on its standard variable home loan account by 0.2 percentage points from October 12.  

The new standard variable rate is 6.6% per annum.  

The CBA said it 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".  

"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," says the CBA.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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