Reserve Bank of Australia makes surprise interest rate cut
The Reserve Bank of Australia has made a surprising decision to cut interest rates to just 1.75% just hours prior to announcing the Federal Budget; the Australian Dollar plummeted 1.5 cents in just 20 minutes following the announcement, though, homeowners and the property industry will welcome the decision. National Australia Bank and Bank of Queensland have already said they will pass on the full value of the 0.25% point reduction to customers.

ANZ Bank is the only big four bank that will not pass on the full value of the Reserve Bank's 0.25 percentage point reduction in official interest rates to home loan customers, blaming the decision on higher funding costs.

Instead, ANZ Bank will reduce its home loan rates by 0.19 of a percentage point, with its benchmark rate for owner-occupiers falling to 5.37 per cent.

ANZ's move came after National Australia Bank, Westpac, Commonwealth Bank and Bank of Queensland said they would pass on the full RBA cut to their home loan customers.

ANZ, which also posted a 24 per cent slump in profit and cut its dividend on Tuesday, said its decision on interest rates struck the right balance between the interests of customers and shareholders.