Why did the Commonwealth Bank cut home loan rates?

The Commonwealth Bank reduced home loan rates following the RBA’s latest cash rate cut to provide mortgage relief and support borrowers.

When will the new rates take effect?

The reduced rates will apply from 22 August 2025 for eligible variable home loan customers.

Which banks have passed on the RBA cut?

Commonwealth Bank and Westpac have announced they will pass on the RBA’s latest rate cut in full to their variable home loan customers, effective 22 August 2025.

What is the RBA decision today?

The Reserve Bank of Australia lowered the cash rate by 0.25 percentage points to stimulate the economy and reduce borrowing costs.

What is the RBA interest rate?

After the latest cut, the official cash rate set by the RBA stands at 3.75% per annum.

How long did 17% interest rates last in Australia?

Australia’s 17% interest rate period occurred in the late 1980s and lasted for several months before gradually easing.

What does it mean when the RBA cuts rates?

It means borrowing costs for banks, businesses, and individuals are lowered, encouraging spending and investment in the economy.

The Reserve Bank of Australia is wholly owned by the Australian Government and operates independently to set monetary policy.

What is the highest interest rate in Australia history?

The highest official cash rate in Australian history was 17.5% in January 1990.

What will interest rates be in 2025?

Economists predict interest rates in 2025 will trend lower than early-year levels, with possible further cuts if inflation slows.

How many rate cuts in 2025?

So far, the RBA has implemented three rate cuts in 2025 to support economic growth.

How will interest rate cut affect my mortgage?

A rate cut reduces your mortgage repayments, potentially saving you hundreds of dollars annually depending on your loan size.

Why is RBA not cutting rates?

When the RBA holds rates, it usually means inflation is still a concern or the economy is performing strongly enough without stimulus.

What happens when the interest rate is cut?

Loan repayments and other borrowing costs decrease, while savings account interest rates often fall as well.

Commonwealth Bank headquarters building with signage in daylight.

AU Stocks

Commonwealth Bank Cuts Home Loan Rates Following RBA Decision

ByRubaisha August 12, 2025August 12, 2025

The Commonwealth Bank has taken swift action following the Reserve Bank of Australia’s (RBA) latest move, cutting its home loan interest rates to provide relief for homeowners. This comes after the RBA decided to lower the cash rate to 3.60 per cent, the third rate cut of the year, as inflation slows and economic growth cools.