Rate cuts trickle through

Two lenders announced changes to their standard variable mortgage rates yesterday, taking to just four the number of lenders that have made changes in response to the Reserve Bank's move to cut the cash rate by 25 basis points on Tuesday.

ING Direct said it would reduce its standard variable mortgage rate by 25 basis points, effective from October 12. The rate on the bank's most popular loan, Mortgage Simplifier, will fall to 5.97 per cent.

The rate on the bank's savings account, Savings Maximiser, will also fall by 25 basis points on the same date.

Greater Building Society said it would reduce the rates on its standard variable home loan and basic variable home loan by 15 basis points, effective from October 8 for new customers and from October 15 for existing borrowers.

The standard variable rate will fall to 6.25 per cent and the basic rate will fall to 5.89 per cent. Greater will cut the rate on its package loan, Ultimate Home Loan, by 25 basis points, to 5.74 per cent.

ING Direct's chief executive, Vaughn Richtor, said: "Our deposit inflow has been going well and we had an RMBS last week that also went well. Our reliance on wholesale funding is down.

"Looking at the total balance, we felt it was the right thing to do for our customers. It is not a grab for market share."

On Tuesday, Bank of Queensland said it would cut its standard variable rate by 20 basis points, to 6.71 per cent, effective from October 19. And Bankmecu said it would cut its rate by 25 basis points, effective from October 15.