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ISCOVER
Jessica Darnbrough
ANZ’s decision to pass on more than the Reserve Bank’s 25 basis point rate cut to borrowers is unlikely to create a precedent.
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According to a new straw poll conducted by The Adviser, 60.8 per cent of brokers believe ANZ’s 0.27 per cent cut will not see other lenders follow suit.
Of the 199 respondents, just 30.7 per cent said the bank’s move would set a precedent, while the rest said they were “unsure”.
ANZ became the first major to cut its standard variable rate (SVR) by more than the Reserve Bank’s cut to the official cash rate when at its monthly review on Friday May 10 the bank announced it would be reducing its SVR by 0.27 per cent, two basis points above the Reserve Bank’s May cash rate cut.
Curtis Property Investments’ Carole Curtis said while she was “unsure” whether or not other lenders would take ANZ’s lead in the future, she believes the bank’s decision is unlikely to set a precedent.
“It is difficult to say because sometimes they don’t pass on the full rate cut so there is always scope for them to pass on more than the Reserve Bank,” she said.
“I believe ANZ’s decision catapulted them into the media limelight, which could put pressure on the other banks, but realistically, I don’t think it will have a flow-on effect. I would like it to, but I don’t think it will.”
Smartline’s Martin Castilla agreed and said ANZ’s decision would help push them into the public eye.
“This’ll win headlines,” he said. “It’s all good. Anything which moves people from a negative to a positive mindset helps them, helps the economy, helps us.”
