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ANZ says 7.25pc buffer has to go

ANZ chief executive Shayne Elliott urged the prudential regulator to scale back the buffer requiring new borrowers have the capacity to pay a 7.25 per cent interest rate, warning it was forcing the bank to turn away one in five loan applicants.

Mr Elliott supported a cut in the Reserve Bank's record low 1.5 per cent cash rate at its pre-election board meeting on Tuesday next week, but warned that this might not stimulate the property market unless the servicing buffer also was lowered.