ANZ matches competitors, a week later

ANZ has matched the rate reductions of the other three major banks by cutting its standard variable mortgage rate by 20 basis points.

The bank announced its new standard variable mortgage rate of 6.4 per cent per annum at its regular rate review meeting on the second Friday of the month.

The timing of this month's meeting means that it is over a week-and-a-half since the Reserve Bank announced a 25-basis-point cut in the official cash rate target, and more than a week since the other major banks announced their rate moves.

ANZ's rate cut will not take effect until Friday next week, which is more than a week-and-a-half after the cuts by some of its major competitors.

The bank's head of Australian operations, Philip Chronican, says continuing competition for deposits and international financial uncertainties contributed to the decision not to pass on the full 25-basis-point RBA cut.

"We believe the decision to lower our variable mortgage rate by 0.2 percentage points is the right one for our customers, providing a competitive mortgage rate while also recognising the significant uncertainty associated with the fiscal situation in the United States and the political situation in Europe," he said in a statement.

ANZ's standard variable home loan rate of 6.4 per cent will be equal to the Commonwealth Bank's, lower than Westpac's rate of 6.51 per cent, but slightly above NAB's standard rate of 6.38 per cent.

Market Data

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    NamePriceChange% Chg
    0.9332-0.0001-0.01%
    AUDUSD=X
    0.5551-0.0004-0.07%
    AUDGBP=X
    0.6750-0.0005-0.07%
    AUDEUR=X
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