Following the 25-bps rate cut announcement by the Reserve Bank of Australia (RBA), Westpac, the local bank, was quick to pass on the benefit to their customers.
Westpac slashed its variable interest rates by 0.25% per annum for home loan customers and small business cash-based loans and overdrafts.
Meanwhile, the Commonwealth Bank of Australia (CBA) also announced: “Following the RBA’s cash rate decision we have reduced the variable rates for our home loan customers by 0.25% p.a.”
As the RBA said: “Board took this decision to support the economy as it responds to global coronavirus outbreak”
AUD/USD holds the RBA-led gains
The Aussie trades 0.32% higher at 0.6557, having hit a new daily high at 0.6566 following RBA’s surprise rate cut announcement.