Westpac, ANZ pass on full rate cut

Westpac and ANZ banks said on Tuesday they will cut their standard variable mortgage
rate by 100 basis points, passing on the full central bank rate reduction.
Westpac also reduced its business lending rates by 100 basis points.
The Reserve Bank of Australia cut the overnight cash rate on Tuesday by 100 basis
points to 3.25 per cent, its lowest level since 1964.
Westpac cut its Altitude, Altitude Business and 55-day credit card rates by 100
basis points.
The home and business loan rate reductions will be effective on Monday February 9,
while the credit card interest reductions will happen on Thursday, February 12.
Earlier in the day Prime Minister Kevin Rudd said the banks should pass on interest
rate cuts as "rapidly as possible."
Westpac retail and business banking group executive Peter Hanlon said in a statement
that wholesale markets remained challenging.
But Westpac was "pleased to support our customers in these difficult economic times"
with the full reduction in the RBA's cash rate, he said.
Mr Hanlon said average monthly repayments on a $250,000 mortgage would drop by $158
per month.
The bank was also offering 5.49 per cent on its three-year fixed-rate home loan.
Meanwhile, ANZ Banking Corp said it would pass on the central bank's interest rate
cut to its standard variable home loan customers.
ANZ followed Westpac in cutting the rate by 100 basis points to 5.91 per cent,
effective Friday February 13.
"Funding costs in wholesale markets remain difficult but ANZ understands the current
economic environment is placing a strain on many households," ANZ chief executive of
the bank's Australia operations Brian Hartzer said.
He said ANZ's decision will reduce repayments for an average $250,000 25-year home
loan by $155.65 a month.
ANZ said its deposit rates and interest rates for credit cards, personal loans and
business lending are under review.
"As market conditions allow, we will continue to pass on further reductions in
funding costs to our customers," Mr Hartzer said.
Commonwealth Bank of Australia Ltd and National Australia Bank Ltd are reviewing
their rates.