ANZ has become the first major to cut its rates by more than the Reserve Bank (RBA).
Earlier this week, the Reserve Bank announced it would trim the official cash rate 25 basis points.
Westpac, National Australia Bank and the Commonwealth Bank of Australia were all quick to move on rates, passing on the full rate cut within hours of the RBA’s decision.
ANZ was the last of the majors to move, waiting til its monthly rate review meeting to make any decision about its interest rates.
At its monthly rate review meeting this morning, the bank decided to cut the interest on its standard variable rate by 0.27 per cent – 2 basis points more than the RBA.
Effective Friday 17 May, ANZ’s standard variable rate will be 6.13 per cent per annum. The 0.27 per cent decrease will save customers about $60 per month or $750 per year for the average home loan of $280,000.
“This month we reviewed a range of factors including the Reserve Bank’s decision to decrease the official cash rate this week, our competitive position and a recent easing in the cost of our wholesale funds,” ANZ CEO Australia Philip Chronican said.
“While competition for deposits remains strong, our overall funding cost position has allowed us to reduce variable mortgage rates by 0.27 per cent per annum.
“This decision reflects ANZ’s approach to reviewing retail lending rates each month, which includes an assessment of our overall funding costs, and I’m pleased our mortgage customers will see a benefit this month.”