CommBank passes on 21 bps rate cut to borrowers

The Commonwealth Bank has announced it will reduce interest rates on its range of variable home loan accounts by 0.21 percentage points per annum with effect from Monday 18 June 2012.

The new Standard Variable Rate is 6.80 per cent per annum.

This ensures NAB will have to reduce its standard variable rate by 20 basis points to keep its promise of offering the lowest standard variable rate of the Big Four banks.

NAB is the last of the major banks to make its interest rate announcement and currently has a standard variable rate of 6.99%

"In making this decision, the Group has continued to balance the interests of its 1.8 million home loan borrowers with those of its 11 million depositors, and those of its shareholders, who include 800,000 Australians who own its shares directly, and millions more Australians who own shares through pension funds," the bank said in a statement.