ME Bank cuts rate by 30 bps

ME Bank yesterday cut its standard variable mortgage rate by 30 basis points, to 6.44 per cent.

Since February the bank had been running a campaign based on its decision to leave interest rates unchanged, while others were making out-of-cycle increases.

In a release issued in April it said: "By keeping rates stable, ME Bank continues to ensure that the full financial burden of higher funding costs is not solely placed on customers."

It highlighted the fact that in December last year it "delivered rate cuts in full to our customers whilst some banks did not."

Yesterday it said: "The continuing pressure of increased funding costs has meant ME Bank has been unable to pass on the full reduction in the RBA cash rate this month."

It said its rate was more than 50 basis points below the majors' rates.

In other rate news, the Australian Financial Review reported that ANZ chief executive Mike Smith had hinted in a speech that ANZ would not pass on the full 50 basis points reduction in the cash rate when it makes its decision on Friday.

The Police Credit Union in New South Wales has joined Unicredit WA in passing on the full 50 basis points.