ANZ has left its interest rates on hold for March despite admitting its funding costs have fallen.
"We have seen some easing of new funding costs from both wholesale markets and domestic deposits over recent months which has taken some of the pressure off what had been a relentless rise in funding costs since late 2007," ANZ Australia chief executive Philip Chronican said in statement.
"Combined with other factors however, the range of ongoing pressures saw the ANZ Group's net interest margin fall slightly in the first quarter of our 2013 financial year."
ANZ's standard variable mortgage rate remains at 6.4 per cent, and variable business loan rates have also been kept on hold.
The Reserve Bank of Australia earlier this week kept the cash rate at three per cent.