ANZ lowers fixed home loan rates again

ANZ is lowering its fixed rate home loans for the second time this month, as the market prepares for a cut in official rates next week.

ANZ lowers fixed home loan rates again

ANZ will lower its fixed home loan rates and residential investment loans rates by between 30 basis points and 50 basis points.

It is the second time this month ANZ has cut its fixed rates and comes as banks get some relief on the price they pay for their own funds on the short-term money market.

ANZ's one-year fixed rate will be trimmed by 0.5 per cent to 8.49 per cent from September 1, while other fixed terms - from two years to 10 years - will be reduced by 0.30 per cent. 

Today's announcement from the ANZ follows its pledge last week it would pass in full to its home loan customers any rate cut the Reserve Bank of Australia (RBA) decides at its next board meeting.

Rival National Australia Bank has also offered a similar, although more qualified undertaking - that it will match a 25 basis point cut to interest rates if the RBA eases monetary policy by that amount at its September 2 board meeting.

Market watchers are tipping the central bank will move to cut rates at its board meeting next week while speculation continues over how great the cut will be.

The other major banks, Westpac and Commonwealth Bank of Australia, have so far refused to guarantee they will pass in full any cut to the official 7.25 per cent cash rate.