Three of the big four banks have passed on the full interest rate cut to home loan customers.
Commonwealth Bank of Australia
(ASX:CBA), Westpac Banking Corp
(ASX:WBC), National Australia Bank Limited
(ASX:NAB), Suncorp Group Limited
(ASX:SUN) and Bank of Queensland Limited
(ASX:BOQ) have all reduced their mortgage rates by 25 basis points after the RBA cut the cash rate to a record low of 2.75 per cent.
Australia and New Zealand Banking Group
(ASX:ANZ) will make its decision at its regular interest rate review on Friday.
Banks hope the lower interest rates will stimulate home lending, a critical source of profits.
Housing credit is growing at its slowest annual pace since Reserve Bank records began in 1977, despite the central bank's attempts to stimulate activity.
CBA generated a net profit of $3.7 billion in the first half of 2013.
