Banks divide on interest rate cut
Gareth Hutchens June 08, 2012
The ANZ Bank took the lead by matching the Reserve Bank's rate cut this week but its main rivals - Westpac, Commonwealth Bank and National Australia Bank - all failed to follow.
As it turned out, the ANZ is the only major lender to pass on the full 25 basis-point cut announced by the central bank on Tuesday, trimming its standard rate to 6.80 per cent, effective from next Friday.
ANZ stuck to its routine of resetting interest rates on the second Friday of each month, and this time all the other big banks opted to wait for the Melbourne-based bank's move before revealing their own plans.
All three other rivals kept back a portion of the cut.
Westpac's standard variable lending rate will drop 20 basis points to 6.89 per cent, effective from June 18.
Commonwealth Bank lowered its variable interest rate by 21 basis points to 6.80 per cent, also from June 18. (There are 100 basis points in a percentage point.)