ANZ cuts home loan rates by 20 points
Market watch top headlines
ANZ has followed its rivals and cut its variable home loan interest rates by 20 basis points, which is less than the central bank's recent rate cut.
ANZ on Friday said it will cut its standard variable interest rate to 6.4 per cent from December 21.
Business customers with variable loans will also have their rates reduced by 20 basis points.
The moves come after the Reserve Bank of Australia cut the cash rate by 25 basis on December 4 to three per cent.
In response, NAB, Commonwealth Bank and Westpac all cut their standard variable rates by 20 basis points.
NAB remains lowest among the big four, with a standard rate of 6.38 per cent, followed by Commonwealth and ANZ with 6.4 per cent and Westpac with 6.51 per cent.
ANZ Australia chief executive Phil Chronican said the bank's rate cut would save variable mortgage customers with a $250,000 home loan about $10 per week.
"This month we assessed a wide range of factors in reaching our decision including the impact of the lower cash rate on domestic funding sources, continuing competition for deposits, the international funding environment and our competitive position," he said.
"We believe the decision to lower our variable mortgage rate ... 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."
ANZ will next review interest rates on February 15, three days after the Reserve Bank's next board meeting to discuss the cash rate.