ANZ has again become the only big four bank to reduce variable mortgage rates in full following the Reserve Bank’s cash rate cut, while rivals CBA, NAB and Westpac will be passing on only part of the amount this time.
ANZ was widely criticised last month when it passed on just 0.18 percentage points of the RBA’s 25 basis point cut, but on Tuesday said it would reduce its variable rates for owner-occupier and investor loans in full from July 12 after the cash rate was cut from 1.25 to 1.0 per cent.
“We looked at a number of factors before reaching this decision, including business performance, market conditions and the impact on our customers,” ANZ retail boss Mark Hand said.
Commonwealth Bank, meanwhile, said it would only be passing on a 0.19 per cent cut for principal and interest standard variable rate home loans, but the entire 0.25 per cent cut on interest-only home loans.
The bank, which was the first to pass on last month’s cut in full, on Tuesday said it was introducing a special five-month term deposit rate of 2.20 per cent for savers – a 0.20 basis point increase – in a “deliberate choice to limit the interest rate reduction on the most popular savings account”.
Rival NAB also decided against passing the entire rate cut, announcing it would reduce all variable rate home loans by 0.19 per cent.
NAB’s Chief Customer Officer for Consumer Banking Mike Baird said: “In making this decision, we have also considered our customers who rely on income from deposits.”
Westpac said it would reduce all variable home loans rates by 0.20 per cent, except for interest-only investor loans, for which it would cut rates by 0.30 per cent.
“It’s critical that we continue to carefully manage our business in a sustainable way for the longer term and take into account the diverse needs of all our stakeholders,” Westpac Consumer chief executive David Lindberg said in a statement.