 ANZ cut home loan rates 0.1%
ANZ bank will cut their standard variable mortgage loan rate by 0.1 per cent. This rate cut matches that announced by the Commonwealth Bank yesterday.
The Reserve Bank of Australia moved yesterday to cut official rates by 0.25 per cent, bringing the cash rate down to 3 per cent. These rate cuts bring the official rate down to a 49-year low.
ANZ's standard variable home loan rate is set to be lowered to 5.81 per cent for new and existing customers and will be effective as of Friday 17th April.
"Tight competition for customer deposits and volatile wholesale funding markets are keeping our funding costs high,'' ANZ head of Australia operations Brian Hartzer said.
"But ANZ understands the current economic environment is placing a strain on many households.''
Commonwealth Bank is cutting 10 basis points from its standard variable mortgage rate taking it to 5.64 per cent, effective April 17. Standard variable mortgage rates have been steadily falling over the past few months, as the RBA continued to cut official rates.
National Australian Bank said is blaming higher funding costs for why it has not moved to cut rates yet.
Westpac is the only one of the big four banks yet to decide if it will pass on yesterday's cut.
RBA Rate Cut
Economists had been divided over whether the central bank would cut rates after its board meeting in Brisbane, or leave the cash rate unchanged this month.
The RBA has already slashed interest rates by 400 basis points - or four percentage points - since September 2008.
The treasurer has already urged the banks to pass on the rate cut to home owners. Speaking before today's announcement, Wayne Swan said he would "most certainly like to see any official rate cuts passed on as soon as possible,''
The official cash rate of 3 per cent is the highest seen in 49 years and will bring welcome relief for many home owners.
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