Australian banks pass on rate cut in full to borrowers

The Commonwealth Bank of Australia ( CBA) on Tuesday announced that it will reduce interest rates on its standard variable home loans by 0.25 percentage points, passing on the central bank's rate cut in full to its borrowers. CBA says it will cut its standard variable home loan rate to 6. 15 percent with effect from May 13. "The Commonwealth Bank believes that this is a balanced decision taking into account both domestic and offshore factors," CBA Group Executive Retail Banking Services Matt Comyn said in a statement. Earlier on Tuesday, National Australia Bank (NAB) announced its decision to cut its standard variable home loan rate by 0.25 percentage points to 6.13 percent, effective from May 13. Several smaller lenders, including Bank of Queensland, Suncorp Bank and ING Direct, have also passed on the central bank's rate cut in full.