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%.
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.
