ANZ (ASX:ANZ) and NAB (ASX:NAB) on Wednesday joined the other Big Four banks in reducing mortgage interest rates, in response to the RBA's first cash rate cut since early 2009.
ANZ announced it will apply the full 0.25 basis point rate cut to its variable rate mortgages, taking the standard rate to 7.55% on November 14.
Announcing the change, ANZ CEO Philip Chronican said the bank was “acutely aware that many of our customers are doing it tough,” and had accordingly decided to pass on the full reduction “despite higher funding costs.”
NAB has decided to only reduce its base rate by 0.20%, but said its 7.47% standard variable home loan is still the lowest among the major banks.
Group executive of NAB personal banking Lisa Gray said the decision was shaped by looming economic pressures.
"The current instability in Europe presents us with additional funding pressures, as costs of funds continue to rise," she said. She added that the bank had also cut a range of deposit interest rates by between five and 25 basis points.
The RBA yesterday announced the rate cut, and Commonwealth Bank (ASX:CBA) and Westpac (ASX:WBC) trimmed their own variable interest mortgage rates.
As well as the Four, Bank of Queensland (ASX:BOQ) has also elected to pass on the full cut, with new CEO Stuart Grimshaw stating that it was “the right thing to do,” considering the fact that “a lot of people around Australia are struggling.”
BOQ shares closed flat on Wednesday, at $8.300. The others fell - NAB by 0.76% to $24.910, CBA by 0.99% to $48.220, WBC by 1.91% to $21.520 and ANZ by 2.15% to $20.900.
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