News: CBA Australia's CBA cuts rates on fixed rate home loans, variable rate loans unchanged

Nov 4 (Reuters) - Australia's biggest lender Commonwealth Bank of Australia (CBA) on Wednesday said it will reduce interest on fixed rate home loans after the central bank trimmed interest rates to near zero in a bid to prop up a sagging economy.

The lender, however, did not pass on the rate cut to variable rate mortgages which accounts for about 80% of its loan book.

The Reserve Bank of Australia cut interest rates on Tuesday to support job creation and tackle a high rate of unemployment after the coronavirus outbreak forced businesses to down shutters, leaving hundreds of thousands without work.

In a statement, CBA said the interest on new four-year fixed rate home loans for owners occupying the property would be reduced 100 basis points, while one-, two- and three-year plans would get a much smaller reduction of 10-15 basis points.

Rates for unsecured business loans through the government's small and medium enterprises loan guarantee scheme and some fully secured business loans would also drop, the lender said.