In a long-awaited move, the Reserve Bank of Australia has implemented a rate cut of 0.25 per cent, prompting swift reactions from the nation’s largest banks, including Westpac, ANZ, Commonwealth Bank, and NAB.
Westpac was the first to announce that it would pass on the full rate cut, effective March 4 for home loans and February 28 for deposit accounts. Customers with a variable interest home loan of $500,000 can expect to save approximately $90 monthly, amounting to $1,080 annually. NAB quickly followed suit with a similar reduction effective February 28, emphasising the hoped-for relief for struggling borrowers.
The Commonwealth Bank also committed to lowering its rates in response to the cash rate cut, with changes taking effect on February 28. Meanwhile, ANZ echoed this sentiment, recognising the strain high interest rates have imposed on households and assuring a thorough review of its interest and deposit rates to accommodate customers in need.
Bankwest and Macquarie Bank also joined the rate reduction trend, indicating that smaller lenders are likely to follow. Treasurer Jim Chalmers welcomed the cut, stating it provides much-needed relief for Australians, while underscoring the collaborative efforts against inflation that led to this positive outcome. He expressed optimism that the move would ease some financial burdens for many households across the country.