ANZ Chief for Australian operations Phil Chronican has admitted he is “cautious” about the property market and urged businesses and investors to finance more new productive assets.

He added that business and investors should not depend on and use the Reserve Bank of Australia’s rate cut “to pile into established housing and existing assets”.

Chronican’s sentiments were revealed shortly after the bank lowered its mortgage rate on Thursday by 25 basis points to a record-low 2.25%.

He also said the regulators’ recent crackdown on riskier parts of the $1.3tn home loan market was not felt, but said the bank’s checks revealed it was already “in line with their guidelines”.

 “The media have highlighted that banks seem to be very quick at passing on increases and slow at passing on decreases,” he said.