ANZ follow Westpac with interest rate cuts

ANZ Bank has cut both its home loan and deposit rates in the lead up to the RBA's first meeting of the year.

They've cut the variable rate for new owner occupiers paying principal and interest with a 20 per cent deposit or more by 0.12 per cent. It is now at 3.12 per cent.

ANZ now offer the second lowest ongoing variable rate of the big four.

Source: RateCity.

RateCity.com.au research director Sally Tindall said ANZ appeared to be doing some "spring cleaning" ahead of the RBA’s meeting next month.Note: the above rates are new customer variable rates for owner occupiers paying principal and interest.

“ANZ’s recalibration of their deposit rates ahead of the next Reserve Bank meeting suggests they are getting their house in order ahead of a potential cash rate cut", Tindall said.

“Today’s home loan cuts are testament to the ongoing competition in the mortgage market. Yesterday we saw Westpac slash investor fixed rates by up to 0.50 per cent and we expect others will follow in coming days,” she said.

Following NAB's saving rate cut earlier in the month, ANZ have followed suit, cutting their Online Saver account base rate from 0.10 per cent to just 0.05 per cent, the worst of the big four.

The old introductory rate for the first three months has been trimmed from 1.6 per cent to 1.55 per cent also.

Source: RateCity

“With a new ongoing rate of 0.05 per cent, ANZ’s online saver account is down there at the bottom of the barrel.“What’s disappointing is that while the home loan cuts are largely reserved for new customers, the savings cuts will hit everyone with an ANZ online saver account", Tindall added.

"A person with $10,000 in one of these accounts would be getting less than 50 cents in interest a month once the introductory rate expires. That’s not even enough for a litre of milk."