The Commonwealth Bank is the first to respond to the RBA’s decision to slash the cash rate to a record low of 1.5% today, but will only hand over around half of the total cut.
The CBA’s standard variable rate (SVR) mortgages reduced by 0.13% to 5.22%, along with also dropping rates for business customers by 0.13% too.
The SVR for investor loans will fall to 5.49%
But in good news for savers, the bank has increased the interest rate on its one-year term deposit by 0.55% to 3.00%, while two- and three-year term deposits also jump by 0.5% to 3.10% and 3.20% respectively.
The CBA announced its decision seven minutes after the RBA announced its cut.
Retail banking services group executive Matt Comyn said increased funding costs and capital requirements meant the bank sought to balance the needs of both customers and shareholders,”
“Today we’ve reduced our mortgage rates to a record low while increasing term deposit rates to provide an opportunity to the millions of Australians who rely on savings,” he said.
All new rate offers announced today will be effective from Friday, August 19.
Here are the new rates: