Subscribe

ANZ cuts home rates to match RBA, moves early

ANZ will lower its interest rate for variable rate mortgages by 0.25 percentage points following its monthly interest rate review.

ANZ cuts home rates to match RBA, moves early

Australia CEO Phil Chronican told BlueNotes the new rate would be effective on Thursday 12 February and will be 5.63 per cent per annum, saving home borrowers about $60 per month or $750 per year for the average home loan of $300,000.

"Importantly the effective date for this change … is a full eight days earlier than most of our major competitors and I think that’s an important customer benefit."
Phil Chronican, CEO ANZ Australia

“We’ve decided to move our standard variable rate for home loans down by 25 basis points which is the same as the movement in the Reserve Bank’s official cash rate,” Chronican told BlueNotes managing editor Andrew Cornell.

He acknowledged the many “moving parts” behind rate decisions could be confusing but emphasised both the rate and when it took effect were important for customers. Chronican said banks were always looking at the cost of their funds which included not just the RBA rate but other funding such as wholesale debt and deposits.

“We’ve tried to have a more open discussion with the community about bank funding costs,” he said.

“It’s true that wholesale funding costs have eased a little bit over the last year or so and that’s taken a little bit of the pressure off.

“Importantly the effective date for this change will be 12 February which is a full eight days earlier than most of our major competitors and I think that’s an important customer benefit.”

The views and opinions expressed in this communication are those of the author and may not necessarily state or reflect those of ANZ.

editor's picks

03 Feb 2015

Global softness forced RBA to cut: Chronican

Andrew Cornell | Managing Editor bluenotes

The numerous economic troubles facing the world, rather than any one large issue, played a role in the Reserve Bank of Australia’s decision to cut interest rates to a record low of 2.25 per cent, according to ANZ Australia CEO Phil Chronican.

29 Jan 2015

Australian economy faces new pressures

Warren Hogan | Former Chief Economist, ANZ

With falling commodity prices, QE in Europe and low inflation figures – how is Australia placed for 2015? Warren Hogan explains.