Following the RBA’s decision to cut official interest rates - the second month in a row they’ve done so - all eyes were on the big banks. But if you were holding out hope that they would pass on the cut in full, we’ve got bad news.
This time round only ANZ reduced rates by the full 0.25%, and we can probably chalk that up to the massive pressure it faced following its decision last month. The rest were far more stingy, passing on between 0.19% and 0.20%.
This continues a trend of withholding cuts which has seen the Big 4 banks pocket approximately $125 million per month in additional revenue since 2016 - or $3.86 billion in total, according to analysis by Mozo.
“As well as holding back a portion of the official cut,” said Mozo Director Kirsty Lamont, “the big banks all delayed the effective dates of their rate relief. A move that saw them collectively bank $108 million.”
Right now, there’s plenty of reason to feel disillusioned with the major banks. Thankfully, there are tonnes of smaller lenders who are competing for Aussies’ attention with some top-notch offers. Here's just a selection.