SYDNEY, Dec 5 (Reuters) - Commonwealth Bank of Australia , the country’s largest mortgage lender, cut its variable mortgage rate by 20 points, passing on most of a 25 basis point rate cut by the central bank a day earlier.
CBA follows rival National Australia Bank’s move to cut rates by a similar level. Mortgage rates are very sensitive in Australia, where one-third of the population have a mortgage and banks are criticised for not passing on the full cut.
A 25 percent basis point cut reduces the monthly repayment on a A$300,000 ($315,000) loan by about A$50.
$1 = 0.9541 Australian dollars Reporting by Narayanan Somasundaram; Editing by Muralikumar Anantharaman