HOME owners with ANZ are likely to be hunting around for a better deal, as the bank plans to hold onto a hefty chunk of this afternoon’s RBA rate cut.
The Reserve Bank of Australia slashed the official interest rate to a new historic low today of 1.75 per cent, with three of the four big banks set to pay it forward.
NAB announced within minutes of the 2.30pm decision that it would pass on the 25 basis point reduction in full, with the Bank of Queensland following suit.
The Commonwealth Bank, the nation’s biggest lender, confirmed its customers will also receive the full rate cut, tweeting the good news just after 5pm. Westpac followed shortly after.
But ANZ, which has sufferered a dramatic profit slump, will only reduce its variable home loan rate by 19 basis points— short-changing customers by close to one quarter of the cut.
The bank unveiled its plan in an obscure 6pm tweet linking to a PDF document, in which group executive for Australia Fred Ohlsson blamed a spike in wholesale funding costs.
“While we’ve absorbed this for some time and taken steps to reduce costs in our own business, higher funding costs mean we are only in a position to pass on a portion of the reduction in the cash rate to our customers,” Mr Ohlsson said in the statement.
“Our rates remain low by historical standards and our standard variable residential rates remain competitive.”
But with the other major banks feeling more generous, these words may well fall on deaf ears.
CBA’s group executive for retail banking services Matt Comyn said the bank had take note of funding costs and tightened capital lending requirements, but was “focused on delivering value for our 1.6 million home loan customers”. Those with standard rate mortgages will recieve the full rate cut from May 20. NAB customers will benefit from May 16, while NAB’s new rates come into effect on March 23.