Commonwealth Bank passes on 40 basis points

Commonwealth Bank (CBA) has cut its standard variable home loan rate by 40 basis points to 7.01%.

The decision came two days after the Reserve Bank of Australia (RBA) announced a surprise 50 basis point cut to the cash rate.

The banking giant said the rate cut would take effect on May 11.

“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.

CBA’s other lending rates and deposit account rates were under review, according to a spokesman.

NAB cut its variable home loan rates by 0.32%, also less than the RBA’s 50 basis point cut on Tuesday.

Westpac is keeping tight-lipped on any interest rate cuts as it announced a drop in net profit.