St George Bank Ltd will reduce its standard variable home loan interest rates by 30 basis points, outstripping the 25 basis point cut announced today by the central bank.

St George’s standard rate will fall to 9.37 per cent, but not until September 29.

The Reserve Bank of Australia (RBA) today announced it will lower the official cash rate by 25 basis points to seven per cent, from 7.25 per cent.

“I am extremely pleased to be able to provide our customers with a reduction in their home loan interest rate, above and beyond the RBA cut announced today,” St George group executive of retail banking Les Matheson said.

“In order to provide customers with a larger reduction in their interest rate, we have decided to wait a few weeks for the RBA decision to fully flow through to our overall funding costs.

“This allows us to offer the additional bonus of 0.05 per cent per annum above the RBA decision, which we know will be appreciated by our customers.

A 30 basis point reduction equates to a saving of approximately $55 per month in repayments on an average size loan of $250,000, over a 30-year loan term.

St George has also decreased rates on deposit products, with most savings and investment products decreasing by 25 basis points.

The big four banks today all said they would pass on the RBA cut.

Their new rates will be available within the next few days.

AAP