News: Three big banks slash rates

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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.