From our second RBA today comes the news that they’ve added on 2 basis points to the RBA cut:
ANZ May 2013 Interest Rate Review
– Reduces variable mortgage rate by 0.27%pa –
ANZ today announced it will lower interest rates for variable rate mortgages by 0.27%pa following its monthly interest rate review.
Effective Friday 17 May, ANZ’s standard variable rate will be 6.13%pa (6.23%pa comparison rate). The 0.27%pa decrease will save customers about $60 per month or $750 per year for the average home loan of $280,000.
Standard Variable Mortgage Interest Rates for Major Banks ANZ Westpac CBA NAB 6.13%pa 6.26%pa 6.15%pa 6.13%pa
ANZ CEO Australia Philip Chronican said:
“This month we reviewed a range of factors including the Reserve Bank’s decision to decrease the official cash rate this week, our competitive position and a recent easing in the cost of our wholesale funds.
While competition for deposits remains strong, our overall funding cost position has allowed us to reduce variable mortgage rates by 0.27%pa.
This decision reflects ANZ’s approach to reviewing retail lending rates each month which includes an assessment of our overall funding costs and I’m pleased our mortgage customers will see a benefit this month,” Mr Chronican said.
ANZ also said that variable rates for small business lending would decrease by 0.25%pa.
This is obviously a marketing stunt rather than a break from the oligopoly pricing range, as clearly shown in ANZ’s own assessment of the Standard Variable Rates across the majors.
I guess customers may as well have it but I’d rather see it put towards some permanent bps charge for all the guarantees the banks enjoy.