Released 12 June 2012



The ANZ Bank was the first to make its interest rate announcement last week and led the way as the only big four bank to pass on the full 25 basis point cut by the Reserve Bank of Australia.

On 5 June 2012, the RBA said it would cut interest rates to 3.50 per cent, the second month in a row that mortgage holders were given a reprieve.

The decision by ANZ sees its standard variable interest rate at 6.80 per cent. Rivals NAB and CBA cut their interest rates by 21 basis points to 6.80 per cent and 6.78 per cent respectively. Meanwhile, Westpac cut its rates by 20 basis points and now has a standard variable interest rate of 6.89 per cent.

Westpac Executive of Retail and Business Banking Jason Yetton said the decision to not pass on the full rate cut had been a difficult one.

“We have sought to balance the needs of our mortgage customers with those of our millions of savers, particularly retirees who depend on the income from their deposit accounts,” he said.

Outside of the big four, ING Direct and Bank of Queensland cut rates by 20 basis points to 6.34 per cent and 6.91 per cent and Unicredit WA passed on the full 25 basis points to 5.85 per cent.