Rate action continues as ANZ slashes 43pts off basic variable

50pt hike on Friday, 43pt slash on Monday as Big Four grapple with RBA decision

Rate action continues as ANZ slashes 43pts off basic variable


By Mike Wood

The ongoing interest rate saga has taken another turn, with ANZ slashing a huge 43 basis points off their basic variable rate.

Their 2.72% is now a 2.29% for customers with an LVR of less than 70%, and 2.49% for those with less than 80%.

That brings them into line with CBA and NAB, who have the same 2.29% rate, with Westpac the last holdout under the symbolic 2% barrier.

Today’s move continues the chaotic fallout from the RBA cash rate decision last Tuesday afternoon.

While they committed to holding the cash rate at a historically low 0.1%, they abandoned a plan not to raise it until 2024, leaving lenders to anticipate when it might rise before that.

The uncertainty, allied to increases in the cost of funds on the bond market, has led many lenders to pass on the price rises to their customers in the form of higher interest rates.

The fixed rate market is seeing hikes as a result of expected cash rate rises, but that has opened up opportunities in the variable space, as seen through ANZ’s call today.

All four major banks have upped their fixed rates in the last month, often while simultaneously lowering their variables in an attempt to redress the balance with customers towards the traditionally more popular variable option.

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