ANZ delivers full rate cut
THE Westpac and Commonwealth banks have fallen short of passing on the full 0.25% interest rate cut announced by the Reserve Bank on Tuesday.
Early on Friday ANZ ended three days of waiting for at least one of the big four banks to respond to the RBA's decision to cut the cash rate to 3.5%.
ANZ cut its variable home loan rate by the full 25 basis points to 6.8%, which will come into effect on June 15. ANZ also cuts its small business loan rate by 0.25%.
The Commonwealth announced after 5pm it was cutting its standard variable home loan rate by 0.21% to 6.8%, effective from June 18.
An hour earlier Westpac revealed it was cutting its variable home loan rate by 20 basis points to 6.89%, effective June 18. The bank cut its small business loan rate by 25 basis points.
NAB is yet to announce its plans.
Treasurer Wayne Swan told reporters in Brisbane ANZ would be the winner if the other big four banks did not follow suit and pass on the RBA cut in full.
"I think customers will walk down the road and get a better deal," Mr Swan said.
"They will rightly be very upset ... if they don't see a full pass through from the major banks."
Mr Swan has enjoyed one of his best weeks as Treasurer, beginning with the interest rate cut and followed by better than expected growth in the national accounts and solid jobs figures.
"We've seen all of that in the face of global uncertainty,' he said.
"It's a good week for Australia, and I'm proud of what Australians have achieved over the past few months."
RBA Governor Glenn Stevens used a speech in Adelaide on Friday to defend the central bank's decision to cut the cash rate, saying it was not the bank's intention to engineer another housing boom.
He said it was important Australians had confidence to adapt to changing circumstances, adding Australia's economic glass was "well and truly half-full".