ANZ was the first of the majors to move, delivering the full rate cut around 1pm yesterday afternoon.
NAB quickly followed suit, leaving the Commonwealth Bank of Australia and Westpac to decide whether or not they would pass on the reduction in full, however the decision to replicate was made late last night.
The move by the big four banks to cut by the full 25 basis points was a surprise and ended a 48 hour deadlock, however this could be the last time that the industry waits with baited breath for the banks to react to the RBA.
ANZ has made it clear that it will no longer be bound by RBA cash rate decisions as its rates are now dictated by the cost of funding. The other banks are almost certain to follow ANZ’s lead.
The majors lagged their smaller competitors with their rate announcements and this may have influences their decision to hand over the full rate cut.
Within hours of the RBA’s announcement ME Bank and BoQ delivered the full 25 basis points to their customers. Since then other non-majors have followed suite with Bankwest and ING DIRECT yesterday announcing that the rate cut would be passed on.
Of the big banks NAB still boasts the lowest standard variable rate of all the majors, sitting at 7.22 per cent.
ANZ is not far behind with a standard variable rate of 7.30 per cent, while CBA offers a rate of 7.31 per cent and Westpac's new rate is 7.36 per cent.