SYDNEY, May 11: Australia and New Zealand Banking Group said on Friday it will cut its variable mortgage rate by 37 basis points, following rival banks in passing on some but not all of the central bank’s 50 basis point cut to the cash rate.
The move will see ANZ’s variable mortgage rate lowered to 7.05 percent per annum, the second highest of the major banks, and will be effective from May 18, ANZ said in a statement.
ANZ is the last of Australia’s major four banks to pass on a cut to its customers after the central bank cut the cash rate by a surprisingly aggressive half a point more than a week ago, saying the move was to ensure appropriate borrowing rates.
Movements in mortgage rates have a big economic impact in Australia where more than 90 percent of all home loans are variable. More than a third of Australia’s 8.5 million households have a mortgage.
(AGENCIES)
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