ANZ cuts SV rate by 10bps, mirrors CBA move

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ANZ BankANZ Banking Group Ltd has cut its standard variable home loan interest rate by 10 basis points, mirroring a move by Commonwealth Bank of Australia Ltd (CBA).

The reduction comes after the Reserve Bank of Australia cut the cash interest rate by 25 basis points to a 49-year low of three per cent on Tuesday.

On April 17, ANZ’s standard variable home loan rate will fall to 5.81 per cent.

“Tight competition for customer deposits and volatile wholesale funding markets are keeping our funding costs high,” ANZ head of Australian operations Brian Hartzer said on Wednesday.

“But ANZ understands the current economic environment is placing a strain on many households.”

On Tuesday, CBA said it would cut its standard variable mortgage rate by 10 basis points to 5.64 per cent, effective April 17.

National Australian Bank Ltd has said it won’t cut rates because of the high cost of wholesale funding.

Westpac is still to announce whether it will cut or not.

ANZ also said it is reviewing deposit rates and interest rates for credit cards, personal loans and business lending.

“As market conditions allow, we will continue to pass on further reductions in funding costs to our customers,” Mr Hartzer said in a statement.

AAP

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