ANZ has just cut its standard variable rate by 0.02% more than the official cash rate.
The bank this morning said it was cutting rates to 0.27% which is 0.02% more than the Reserve Bank of Australia’s cut made earlier this week.
Now ANZ’s standard variable rate on mortgages is 6.13%, which is the same as NAB’s.
ANZ said in a statement the 0.27%pa decrease will save customers about $60 per month or $750 per year for the average home loan of $280,000.
Cheaper funding costs allowed ANZ to lower its rate, ANZ Australia CEO 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,” he said.
The RBA’s cash rate is now a historically-low 2.75%.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.