Big banks cut rates by 0.8 per cent

Westpac led the five major banks in cutting interest rates on a standard variable mortgage by 0.8 per cent yesterday, following the Reserve Bank's shock move to cut official cash rates by a full one per cent, from seven per cent to six. Westpac and NAB's standard variable rate now sits at 8.56 per cent, with ANZ at 8.57. Commonwealth Bank is slightly lower at 8.53 per cent. The rate cut will save the average mortgagee with a $300,000 home loan about $2,000 per year or $168 per month. Economists said the RBA would probably continue to cut rates down to about five per cent by mid 2009.

Source: Herald Sun