CBA reduces interest rates to regain market share: The Australian

The news: The Commonwealth Bank has reduced interest rates on mortgages in an effort to undercut major rivals and claw back market share, according to The Australian.

The numbers: The report suggested new and existing customers could be being offered lower rates through direct communication, rather than via advertised rates.The bank's website offers a variable rate for new owner occupiers of 6.49% (LVR 60% or less).However its online-only arm, Unloan, advertises a variable rate for the same customer type of 5.99% (LVR 80% or less).

The context: Interest rates have climbed rapidly in the past 18 months as the Reserve Bank hikes the cash rate to control inflation. Many analysts have claimed the cash rate is at or near its peak and at least one rate cut could occur in 2024. Lenders may then pass this discount on to borrowers. While banks dominate the home loan market in Australia, they are challenged by a raft of smaller lenders who specialise in serving credit-impaired borrowers.