ANZ was the first major bank to declare their cut intentions, announcing a cut of 18 basis points.
It was a move that was a far cry from the expected full rate cut that Treasurer Josh Frydenberg urged all banks to pass.
It was made even more jarring when the other major banks announced their own intentions and within coming days when the lenders announced theirs.
ANZ’s rate was cut by only 18 basis points when the official rate was cut by 25 basis points to 1.25 per cent, a historic low.
The announcement by the bank so soon after the rate reflected that ANZ had planned to cut its variable interest rates for some time but the move backfired when CBA and NAB announced the full cut to their variable home loans.
Westpac waited till after the evening news to announce their own rate cut which was a cut of 20 basis points for owner occupier customers and a larger 35 basis points for investor customers.
In the days that followed, Macquarie Bank and ING announced their own commitment to the full rate cut, as did Athena Home Loans and Auswide.
Suncorp meanwhile followed Westpac’s path and announced a cut of only 20 basis points but business loan rates would be dropped by the full amount.
“We also recognise there are just as many, if not more, Australians who rely on the income of their savings to support their living expenses, particularly retirees, and falling rates is going to impact them.
“This has been a significant consideration in our decision today, and why we can continue to provide competitive rates for our deposit customers,” said Suncorp’s chief executive of banking and wealth David Carter.
BOQ, prior to announcing their new chief executive said that they would pass on the 25 basis point cut for all but one of its loans.
“We believe the responsible decision at this moment in time is to get behind our home lending customers and ensure they enjoy the benefits of reduced cost of funds,” said group executive of retail banking for BOQ Lyn McGrath.
Some smaller lenders and banks like Bank Australia, Bankwest and Qudos Bank passed on the full cut.
While RAMS and St George both followed Westpac’s lead and announced cuts between 20 and 35 basis points depending on the loan.
