ANZ is the last of the big four banks to pass on the Reserve Bank of Australia’s quarter of a percentage point interest rate cut.
ANZ’s standard variable rate will fall to 5.88 per cent, from Friday August 16, which will see a borrower on an average $280,000 loan save $58 a month.
The announcement comes three days after the Commonwealth Bank and National Australia Bank said they would match the RBA’s 25 basis point easing, taking their loan rates to 5.9 per cent and 5.88 per cent respectively.
Westpac went further, cutting its standard variable rate by 28 basis points, but to a higher level of 5.98 per cent.
ANZ chief executive Philip Chronican said economic circumstances warranted the latest cut to mortgage rates.
“In making our decision this month, we took into account our cost of funding, our competitive positioning and the impact of economic conditions on our customers,” he said in a statement.
Westpac’s cut does not come into effect until August 19, while NAB’s is effective from August 12, while Commonwealth’s starts on August 14.
The official cash rate has fallen to an all-time low of 2.5 per cent.
Other lenders to announce 25 basis point rate cuts included St George, which is owned by Westpac, Bank of Queensland and ING Direct.
Bendigo and Adelaide Bank has also announced a 25 basis point cut, taking its variable home loan rate to 6.01 per cent, from August 26.
“When setting interest rates our bank needs to take into account a wide range of factors and carefully consider its key stakeholders including borrowers, depositors, staff, shareholders, partners and the wider community,” managing director Mike Hirst said in a statement.