Commonwealth Bank of Australia, Westpac cut home loan rates after RBA move

(Reuters) -Commonwealth Bank of Australia, the country’s largest lender, and Westpac Banking Corp, the third-biggest, cut their standard variable home loan rates by 25 basis points on Tuesday following the Reserve Bank of Australia’s rate cut.

The central bank lowered its cash rate by 25 basis points to 3.60% after wrapping up a two-day policy meeting, citing falling inflation and a loosening labour market, though it remained cautious on the prospect of further easing.

CBA’s rate cut takes effect from August 22, while Westpac’s reduction becomes effective from August 26.

The moves mark the latest response by Australia’s major banks to the RBA’s third rate cut this year, as borrowing costs continue to ease from their recent peaks.

(Reporting by Roushni Nair in Bengaluru; Editing by Jana