ANZ announced today they are offering a competitive fixed mortgage interest rate, announcing a cut up to half a percentage point. The new rates will apply from next Monday.
ANZ Banks' variable interest rates remain unchanged. The decision comes as financial business consider the possibility of an official interest rate cut of 0.25% by the Reserve Bank of Australia next month. Many of the big banks are still refusing to comment on whether they will pass on the benefits of an RBA rate cut to their customers.
ANZ's move was prompted by a sharp reduction in the cost of funds that it borrowed on the short-term money market.
Mr Rowland told the hearing the cost of short-term funds had fallen dramatically in recent days.
"Those sort-term funding costs have moved from an average of 10 basis points over the official cash rate, to earlier this year to 100 points, (to) last week 60, (to) yesterday 20,'' Mr Rowland said.
Figures from the Australian Bureau of Statistics show that the popularity of fixed-rate loans had fallen by half since the start of the year and only 11.7% of new mortgages approved in June were at a fixed rate. The figures indicate that borrowers expect an interest rate cut soon.
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