Price wars continue with ANZ rate cuts

The nation's biggest lender has reduced rates across the board ahead of next month's official cash rate announcement, where the central bank is expected to cut the OCR once again.

ANZ has unveiled a new six-month rate at 3.65%, while its two-year rate falls to 3.45%. Its one-year rate will be available at 3.55%, as of October 15. 

The two-year rate is 0.04% cheaper than ANZ's big-four rivals, and is expected to prompt further rate cuts across the board. The new ANZ rate is more expensive than ICBC, China Construction Bank, and HSBC's offerings. 

Ben Kelleher, ANZ's acting managing director for retail and business banking, predicts a strong spring and summer market. 

He added: “The current extreme low interest rate environment not only represents an opportunity for new home buyers to enter the market, but for existing home loan customers to pay off as much of their debt as possible.”

Glen McLeod of Edge Mortgages welcomed the news for clients. He told TMM Online: "I was surprised to hear that they have cut the rate by .04%. Seems the numbers being looked at in the economy may be gloomier than everyone thought. They could just be pricing in now for the OCR in November which is common practice. Anyway, you cut it, the customer wins."