While, Westpac, the Commonwealth Bank, and NAB have all passed the full RBA rate cut onto home loan customers, ANZ has announced that it is breaking ranks with its peers by only passing on 19 basis points of the RBA’s 25 basis point cut to its owner-occupied customer set.
The ANZ’s move is not entirely unexpected given the release of its weaker than anticipated profit results today. But Fred Ohlsson, ANZ group executive Australia, said that the decision to retain 6 of the 25 basis points the RBA had delivered via today’s rate cut was because of a combination of low rates and funding costs.
Ohlsson said ANZ had already “maintained the lowest standard variable rate for almost three years” while at the same time “wholesale funding costs have again been rising in recent months”.
“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,” Ohlsson said.
The Commonwealth Bank’s group executive of retail banking services, Matt Comyn on the other hand said the CBA noted “funding costs and capital requirements have tightened”, the bank was “focused on delivering value for our 1.6 million home loan customers and have confirmed today that we will pass on the full benefit” of the RBA’s rate cut.