ANZ passes on RBA rate cut

ANZ is passing on in full the RBA's interest rate cut, slicing 25 basis points off its variable retail home loan rates.

Moody's is warning that ANZ's credit rating is at risk of it loses its BBSW rate rigging court case. (AAP)

ANZ is the first of the big banks to pass on the Reserve Bank's interest rate cut.

ANZ says its variable retail home loan rates will fall by 25 basis points from May 8.

The RBA on Tuesday cut its cash rate by the same amount to a new record low of two per cent.

"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," ANZ Australia chief executive Mark Whelan said.