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ANZ Banking Group (ASX:ANZ) has followed its banking rivals and lowered its variable interest rate for mortgages by 20 basis to 6.4 per cent.
The bank’s move falls short of the Reserve Bank of Australia’s (RBA) full 25 basis point rate cut earlier the month which took the nation’s key interest rate down to a Global Financial Crisis (GFC) low 3 per cent.
Commonwealth Bank of Australia (ASX:CBA), National Australia Bank Limited (ASX:NAB) and Westpac Banking Corporation (ASX:WBC) have all lowered their standard variable rates by 20 basis points each.
ANZ’s Australia CEO Phil Chronican says the reduction will save variable mortgage customers holding a $250,000 home loan about $10 every week.
Mr Chronican also believes the rate cut also recognises the significant uncertainty surrounding the US fiscal situation and the European political situation.
ANZ Bank boosted its net profit by 6 per cent to $5.7 billion in the 12 months to the end of September.
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