Westpac, NAB partially pass on rate cut

Westpac Banking Corporation has cut its standard variable home loan interest rate by 65 basis points, while the National Australia Bank has lowered its rate by 62 basis points.

The move follows the Reserve Bank of Austrlaia's cut to the official cash rate of 75 basis points to 5.25 per cent.

Westpac's new rate will be 7.71 per cent, effective November 10, while NAB's rate will fall from 8.36 per cent to 7.74 per cent as of November 14.

Both banks follow the Commonwealth Bank of Australia's lead yesterday, which cut its rate by 58 basis points.

Westpac said it will also reduce interest rates on consumer credit cards and business credit cards by up to 80 basis points, from 14 November.

"Westpac is sensitive to the challenges being faced by many working families, however, we are still having to meet substantially higher funding costs," Westpac group executive, retail and business banking, Peter Hanlon said.

The bank said that small business owners in particular would benefit from reduced credit card interest rates.

Meanwhile NAB said it will reduce its 1 Year Intro fixed rate by 1 per cent to 5.99 per cent per annum.

"The 1.25% in interest rate cuts we have already delivered, plus this 0.62% decrease, will save customers $5,610 a year or over $467 a month in interest on an average $300,000 loan," NAB chief executive Ahmed Fahour said.

Meanwhile later this afternoon, ANZ announced it would cut its variable mortgage rate by 58 basis points.

Additionally, Westpac confirmed today it had a $200 million exposure to Allco Finance Group, which yesterday appointed voluntary administrators and receivers.