ANZ has announced it will lower its interest rate for variable rate mortgages and small businesses by 0.25 per cent P/A following its monthly interest rate view. The cut sees last Tuesday’s cut to the official cash rate passed on in full.

 

ANZ’s new standard variable mortgage rate will be 6.80%pa (6.90%pa comparison rate). New small business rates are also effective from 15 June.

 

ANZ CEO Phillip Chronican said that while funding costs remain high as a result of the ‘deteriorating economic situation in Europe’, the bank was pleased to be able to pass on the rate cut to its customers.

 

“The bottom line is that while deposit customers are receiving very competitive deposit rates, many of our borrowing customers are under pressure from a range of other costs. We felt that reducing interest rates by 0.25%pa for home borrowers and for small business was the right decision in these circumstances,” Mr Chronican said.

 

“This decision recognises that, although we need to be realistic about funding costs and the challenges the global economic situation is presenting, ANZ also needs to absorb its share of the burden. Hopefully this decision will help relieve some of the pressures that we know homeowners and small businesses are facing at present.”