24 October 2008

In addition to the recent reduction to MyState Financial's Standard Variable Home Loan rate of 0.80%, MyState Financial has again decreased rates by another 0.22% effective Monday 27 October.

Chief Executive Chris Brooks says "given the strength of MyState Financial's balance sheet and our strong financial position, we are pleased to pass this additional decrease on to our Members".

"We have no doubt this additional reduction will provide some relief to household budgets, particularly in the lead up to Christmas," he said.

Mr Brooks predicted another decrease to the cash rate by the RBA at the November meeting on Tuesday November 4.

"The ongoing market volatility means it is difficult to predict what the RBA will do in relation to the cash rate the week after next".

"Particularly as they will need to consider the impact of the voluntary reductions in lending rates that we, and other financial institutions have passed on since the October meeting".

"That said, at this stage we are predicting another decrease in the cash rate next month".

MyState Financial Members will receive letters regarding their new repayments over the coming weeks.