ANZ first of big four to pass on interest rate cut
ANZ has again become the first of the big four banks to reduce variable mortgage rates following the Reserve Bank’s cash rate cut, this time passing on the full amount.
ANZ was widely criticised last month when it passed on just 0.18 percentage points of the RBA’s 25 basis point cut, but on Tuesday said it would reduce its variable rates for owner-occupier and investor loans in full from July 12 after the cash rate was cut from 1.25 to 1.0 per cent.
“We looked at a number of factors before reaching this decision, including business performance, market conditions and the impact on our customers,” ANZ retail boss Mark Hand said.
The official cash rate has been trimmed another 25 basis points to now sit at just one per cent – down from 1.25 per cent last month.
The Reserve Bank board met today and agreed cut the interest rate to the lowest level in Australian history.
It means in the space of four weeks the rate has fallen from 1.5 per cent to one per cent, an unprecedented level.