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ISCOVER
Staff Reporter
In less than one year, Australia’s big four banks have already refused to pass on a combined 89 basis points in interest rate cuts to their borrowers – reinforcing their independence from the Reserve Bank.
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So far this year, the Reserve Bank has cut 100 basis points from the cash rate – yet Australia’s major lenders have refused to follow suit.
National Australia Bank has passed on the least amount of savings onto customers, with the bank cutting the interest on its standard variable rate by just 73 basis points since the beginning of the year.
Westpac isn’t far behind, with the lender passing on just 75 basis points out of a possible 100 basis points, while the Commonwealth Bank of Australia has passed on 81 basis points.
While ANZ was the last major to move on rates this month, it has, overall, passed on the greatest interest rate cuts to borrowers – trimming 82 basis points from its standard variable rate since the beginning of the year.
The majors’ refusal to pass on the RBA’s rate cuts in full highlights just how much these lenders have managed to distance themselves from the Reserve Bank.
ANZ has, arguably, distanced itself the most, with the bank choosing to “independently” review its mortgage rates once a month regardless of what the Reserve Bank does.
