Released 11 May 2012



ANZ Bank will decrease interest rates for variable rate mortgages and small business lending by 0.37 per cent from 18 May 2012. 

The decision follows the RBA’s interest rate cut of 0.50 per cent, announced after its board meeting last week (1 May 2012).

ANZ’s new standard variable mortgage rate will be 7.05 per cent (7.15 per cent comparison rate). This compares to Westpac which also dropped its rates 37 basis points to 7.09 per cent, Commonwealth Bank of Australia which dropped 40 basis points to 7.01 per cent and NAB which has the lowest rate of the big four at 6.99 per cent following its cut of made passed on 32 basis points.

ANZ's 0.37 per cent decrease will save customers about $20 per week for the average home loan of $280,000, while small businesses will save $9.25 per week for the average business loan of $130,000.

ANZ CEO Australia Philip Chronican said the RBA’s recent decision to reduce the cash rate has impacted domestic funding sources which gave the bank the scope to reduce lending rates by 0.37% pa.

In December 2011, ANZ announced it would review variable rates for retail mortgages and small business lending on the second Friday of each month.