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ANZ becomes final major to cut rates

by Staff Reporter8 minute read
The Adviser

Jessica Darnbrough

More than a week after the other majors announced their rate cuts, ANZ has finally moved on rates.

Earlier today at the major’s monthly rate review meeting, ANZ announced it would cut 37 basis points from its standard variable rate.

Effective from 18 May, ANZ will boast a new variable rate of 7.05 per cent – slightly more expensive than NAB at 6.99 per cent and CBA at 7.01 per cent.

ANZ chief executive Australia Philip Chronican said the RBA’s decision to reduce the cash rate had impacted domestic funding sources giving the bank scope to reduce lending rates.

“We continue to work hard to ensure we are competitive despite sustained funding pressure driven by the high rates we are paying to our 2.9 million deposit customers relative to the Reserve Bank’s cash rate and the ongoing volatility in wholesale money markets,” Mr Chronican said.

Today’s monthly interest rate review follows an announcement by ANZ in December 2011 that it would review variable rates for retail mortgages and small business lending on the second Friday of each month.

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