Flood of rate cuts continues

by AB,Adam Smith13 May 2013

Following the RBA announcement on Tuesday that it would lower the official cash rate to 2.75%, a flood of cuts has continued to flow from lenders. Credit Union Australia has announced it will reduce both its variable and fixed rates.

The mutual said it will lower its standard variable rate by 25bps to 5.60%, which it claimed undercut the average of the majors by 57bps. CUA also trimmed 11bps from its three-year fixed rate home loan, cutting it to 4.99%, while lowering its three-year fixed premium home loan to 5.30%.

Adelaide Bank also announced it would drop its standard variable rate by 25bps, effective 27 May. The move will bring the rate on the bank's Variable SmartFit product from 5.81% to 5.56%.