ANZ kindly passed on the full 25 basis point RBA rate cut that we would never have had if the RBA waited a few days for the GDP and jobless data. Today, ANZ is offering a discounted variable home loan rate of just 5.73% per annum. We are only 60 basis points away from the all-time historical lows in the RBA's inflation targeting period. I cannot wait to see what NAB's UBank comes out with...
What a pearler of a situation Aussie borrowers find themselves in: well above-trend economic growth; full employment; super strong business investment; above-trend household consumption; but, wait for it, well-below average mortgage rates! Thanks "Santa Clause Stevens"---you will be deified by indebted households! Now just don't mention the numerically superior savers. Property Observer has the wrap on ANZ:
ANZ will pass on the full RBA cash rate cut to borrowers, the bank has announced as part of its monthly interest rate review. The bank will lower interest rates for variable rate mortgages and small business lending by 0.25 percentage points per annum effective June 12, 2012. ANZ’s new standard variable mortgage rate will be 6.80% pa. New small business rates are also effective from June 15. The 25-basis-point decrease will save customers about $13.50 per week for the average home loan of $280,000, while small businesses will save $6.25 per week for the average business loan of $130,000. ANZ chief executive Australia Philip Chronican says: "Funding costs remain elevated as a result of the deteriorating economic situation in Europe and strong competition for deposits. “We are, however, pleased to be in a position to reduce rates by 0.25% this month.
