Business lending and deposit rates begin to drop

Interest rate cuts to business and personal lending was largely ignored by financial institutions after the 25 point cut in September, but some rates cuts on business loans and personal loans are beginning to percolate through the system following the Reserve Bank of Australia 100 basis point decrease in the cash rate this week to six per cent.

Westpac has cut 25 points from the variable and base rates of half a dozen business lending products, with Commonwealth also cutting 25 points on similar business packages, with Australia's biggest lender cutting up to one percentage point of some fixed business loans.

LaTrobe Financial cut 75 points from their variable Commercial Lending product.

Credit card users are yet to have any relief, although banks have been quick to slash deposit returns.

Australia and New Zealand has cut between 40 and 100 points from over twenty tiered short-term deposits, with Westpac term deposits cut by between 30 and 210 points, with the three month $5,000 to $9,999 dropping from 7.9 per cent to 5.8 per cent.

RaboPlus has cut short- and long-term deposits out to five years by between 60 and 135 points, with Members Equity 90 day to two year range of terms dropping by between 60 and 105 points.