UPDATE 1-Australian banks cut variable rate 80 basis points

(Adds details of Australia & New Zealand Bank rate cut)

SYDNEY, Oct 7 (Reuters) - National Australia Bank (NAB.AX), the country's largest lender, on Tuesday cut its standard variable home loan rate by 0.80 percentage point to 8.56 percent annually, following similar moves by its main competitors.

Earlier Tuesday, the Reserve Bank of Australia cut the official cash rate by a surprisingly large 1 percent to 6.0 percent.

Australia & New Zealand Banking Group (ANZ.AX), Westpac Banking Corp Ltd (WBC.AX) and Commonwealth Bank of Australia Ltd (CBA.AX) have also said they would reduce standard variable home loan rates by 80 basis points following the reserve bank's decision.

"Funding costs have increased even for strong well capitalised banks such as ANZ," ANZ Chief Executive Australia Brian Hartzer said in a statement.

That meant an 0.80 percent cut was the "maximum reduction" ANZ could make at present, he said. (Reporting by James Regan and Mette Fraende))