St George Bank Ltd has cut its standard variable home loan interest rate by 21 basis points.

Australia’s fifth largest bank said the rate will fall to 8.36 per cent from October 31.

The cut follows an 80 basis point reduction in its standard rate less than two weeks ago, which came after the central bank lowered the cash rate by 100 basis points.

“We believe this move reinforces St George’s commitment to remain highly competitive in the home loan market,” the bank’s head of retail Les Matheson said.

The 21 basis point reduction equates to a saving of about $37 a month in repayments on an average size loan of $250,000 over a 30 year loan term.

AAP