The ANZ bank has dropped its variable rates for mortgages and business lending by 0.37 per cent, dropping to 7.05 per cent.

 

The bank projects the decrease will save the average customer $20 per week on an average home loan of $280,000, while small businesses are expected to save $9.25 per week for the average business loan of $130,000.

 

ANZ CEO Australia Philip Chronican said: “At this month’s review we noted that the RBA’s recent decision to reduce the cash rate has impacted domestic funding sources giving us scope to reduce lending rates by 0.37%pa.

 

“We continue to work hard to ensure we are competitive despite sustained funding pressure driven by the high rates we are paying to our 2.9 million deposit customers relative to the Reserve Bank’s cash rate and the ongoing volatility in wholesale money markets,” Mr Chronican said.

 

The monthly interest rate review follows an announcement by ANZ in December 2011 that it would review variable rates for retail mortgages and small business lending on the second Friday of each month.