Commonwealth Bank reduces interest rates following a bold rate cut decision by the RBA, calling it ‘sweeping changes.’

Australia’s largest home loan lender, Commonwealth Bank (CBA), has reduced a range of fixed and variable mortgage rates for customers. This decision follows the bank’s confirmation that it is maintaining its forecast for a November rate cut from the Reserve Bank of Australia (RBA).

CBA has lowered fixed rates across its one, two, three, and four-year terms by up to 0.70 percent, while select new customer variable rates have dropped by up to 0.35 percent. However, the bank’s standard variable rate and rates for existing customers remain unchanged.

Earlier, NAB was the last of the Big Four banks to cut variable rates back in April, but a wave of fixed-rate reductions has occurred recently. This week, Westpac reduced a range of fixed rates by up to 0.80 percent, while NAB cut its three-year fixed rate by 0.60 percent in July. However, experts have cautioned against locking in a fixed rate without considering potential risks.