ANZ announces interest rate cut

Friday 12 October 2012

Article by Mozo

The last of Australia's "big four" banks has cut the interest rates attached to some of its mortgages.

ANZ has followed in the footsteps of National Australia Bank and the Commonwealth Bank by trimming its standard variable rate packages by 0.2 per cent.

Last week, the Reserve Bank of Australia (RBA) sanctioned a 25-point reduction in the national cash rate, but none of the four major lenders have passed this on in its entirety.

Indeed, Westpac only introduced an 18-point cut.

Banking chiefs across the country have highlighted the clamour for deposits and high borrowing costs as the main reasons behind their reluctance to slash their rates by the full amount advised by the RBA.

"Recent stability in wholesale funding markets has been offset by the impact of intense competition for retail deposits as banks seek to improve their funding mix in response to market and regulatory pressures," commented chief executive officer at ANZ Philip Chronican.

Some industry experts have predicted the national cash rate to fall even further by the end of the year, even though it is already at a three-year low of 3.25 per cent.

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ANZ announces interest rate cut

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