ANZ has become the first of the big four banks to announce it will lower interest rates for variable retail home loans, after the Reserve Bank lowered the cash rate to two per cent.

Traditionally the slowest of the big four banks to respond to RBA rate decisions, on Tuesday it only took the bank 71 minutes to announce it was passing on the savings to customers.

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The decision will bring ANZ’s standard variable interest rate to 5.38% per annum. The bank said this 0.25% percentage point decrease would save customers about $60 per month or $750 per year for the average home loan of $300,000.

ANZ CEO Australia Mark Whelan said: “We hope by announcing this decision today we’re able to provide certainty for our customers looking to manage their household budgets as well as playing our part in supporting the broader economy,” Mr Whelan said.

ANZ said the hasty response to the RBA’s decision was down to a new, “more flexible approach” to rate setting.