Lenders have responded to the Reserve Bank’s decision to cut the official cash rate by 25 basis points to 2% yesterday by passing these savings onto consumers.
announced it will drop its standard variable rate by 25 basis points to 5.38%, effective Friday 8 May. The major bank says it will save consumers about $60 per month or $750 per year on the average home loan of $300,000.
“We hope by announcing this decision today we’re able to provide certainty for our customers looking to manage their household budgets as well as playing our part in supporting the broader economy,” ANZ CEO Australia, Mark Whelan said.
Direct has also lowered it standard variable rate by 25 basis points. The non-major’s Mortgage Simplifier product will be 4.72%, effective Friday 15 May.
Finally, ME Bank
has announced it will pass the RBA
’s rate cut in full to its customers. The non-major’s standard variable rate will be cut to 4.88%, effective Friday 22 May. Its member package rate will fall to 4.68%.