ANZ is cutting its variable home mortgage rate by a full percentage point to fully reflect the cut in the Official Cash Rate (OCR) by the Reserve Bank of New Zealand.

ANZ cut its standard variable rate to 9.45 percent from 10.45 percent, effective for new customers from tomorrow and effective for existing customers from November 21.

ANZ cut its ANZ Flexiplus rate to 9.7 percent from 10.7 percent, effective for both new and existing customers from November 21.

ANZ is one of the two brands run by ANZ National, the country's largest bank. The move will be welcomed as the amount of official rate cuts passed on by banks to customers has been an issue in many countries.

Central banks have been cutting official interest rates to stimulate economies. On Thursday, Reserve Bank governor Alan Bollard cut the OCR fr o m 7.5 percent to 6.5 percent.

Variable mortgage rates have been at historically high premiums to the OCR but a lot of borrowing in New Zealand is on fixed rate mortgages.

Westpac today cut its fixed mortgage rates by between 19 basis points and 69 basis points.

ANZ National earlier announced a range of cuts to its fixed mortgage rates ranging from 30 basis points to more than 100 basis points.

Kiwibank was the first to move and it cut its variable rate to 8.70 percent.