Aussie 'Big four' banks cut home loan rates following RBA move
This follows the Reserve Bank of Australia lowering its cash rate by 25 bps to a two-year low of 3.6% on Tuesday, citing falling inflation and a loosening labour market.
However, it remained cautious on the prospect of further easing as well as the economic outlook amid uncertain growth prospects.
The move brings the central bank's total rate reduction from the beginning of the year to 75 basis points.
Westpac Banking Corp (WBC.AX), opens new tab, the third-biggest lender, and ANZ Group (ANZ.AX), opens new tab, the fourth-largest, also followed suit with identical 25-bp cuts to their variable home loan rates.
CBA and ANZ's rate cuts take effect from August 22, while NAB's reduction becomes effective from August 25 and Westpac's from August 26.
All four major banks have now passed on the full rate reduction to home loan customers.
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Terms such as minimum lock-in periods, penalties for early withdrawal, compounding frequency, and the credit quality of the issuer all affect the actual value of a product. Evaluating these factors is essential when comparing fixed-term deposit rates and bond yields. Aligning choices with liquidity needs, risk tolerance, and cash flow planning will often yield better outcomes than pursuing yield alone. 4. Diversify across providers and terms Concentration risk is often underestimated. Relying too heavily on one bank, product type, or maturity date increases exposure to rate shifts or unforeseen changes. Diversifying across different banks, institutions, and maturity horizons can help mitigate this. For example, combining short-term deposits with medium-duration bonds provides flexibility, liquidity, and protection against falling rates. This layered approach also helps investors avoid reinvesting large amounts during unfavourable periods. 5. Consider bonds as a strategic alternative to term deposits Bond investments can offer stable income, capital protection, and greater flexibility than traditional deposits. In a rising rate environment, bonds may deliver higher yields and compare favourably against typical bank term deposit rates, especially for those seeking predictable returns. Capital Guard AU offers a range of Australian fixed-income solutions, including secure fixed-income bonds and tailored portfolios designed to help investors access the best Australian bond rates available. A Cautious Shift Toward Fixed Income Capital Guard has observed a growing preference among Australians for steady, income-generating assets over market-linked growth. This shift reflects both economic conditions and a demographic trend, as more individuals seek to convert accumulated savings into predictable income streams. The firm notes that interest in term deposits, investment in Australia, and other fixed-income investments has increased over the past 18 months. While interest rates remain elevated, the opportunity to lock in secure returns is strong. But investors need to weigh access, taxation, product structure, and timing. A diversified, well-planned fixed-income portfolio can help maintain lifestyle goals without taking on unnecessary risk. To explore how to invest in fixed-income visit Capital Guard's website, opens new tab. About Capital Guard Capital Guard AU Pty Ltd is an ASIC-authorised financial services provider (AFSL 498434, ACN 168 216 742, ABN 48 168 216 742), headquartered at Level 36, 1 Macquarie Place, Sydney NSW 2000. The firm offers services in fixed-income and equity investments, retirement planning, and general financial advice. For more information, visit opens new tab and follow Capital Guard on Facebook, opens new tab, LinkedIn, opens new tab, Instagram, opens new tab, X, opens new tab, and YouTube, opens new tab. Legal Disclaimer Investors are encouraged to review our Financial Services Guide, opens new tab and Risk Disclosure Statement, opens new tab and to consult a licensed adviser before making investment decisions. Media Contact Capital Guard+61 2 8551 2719info@ ### SOURCE: Capital Guard Copyright 2025 EZ Newswire See release on EZ Newswire
