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Westpac has become the third of the majors to cut its rates, but like the NAB and CBA before it has ignored the Treasurer's request to pass on the RBA's entire 50bp cut.
Westpac will pass on 37bps of the RBA cut - but said it would cut its variable rate business loans by the full 50bps.
According to The Australian, Westpac's head of retail banking Jason Yetton said the bank felt it is important to help small businesses at this time.
"If business is doing well it follows that we're all doing well. At the same time we understand the need to keep mortgage rates as low as possible and continue to reduce rates for homeowners," he said.
Treasurer Wayne Swan lambasted NAB - the first of the four to move - for not going all the way.
"NAB and all the major banks are booking huge profits, so customers shouldn't hesitate to ditch any bank that takes them for a ride with decisions like this," he said earlier this week.
Other banks to cut rates today included St George and Bendigo and Adelaide Bank; 38bps and 35bps respectively.
ANZ's rate stand gives free reign to banks, broker boss says - ANZ's stand earlier in the year to review its mortgage rates independently of the RBA has given interest rate carte blanche to all banks, one industry pundit has claimed.
Praise mostly for RBA, but some say it went too far - Most market commentators are pleased with the RBA's decision today to knock 50 basis points from the official cash rate - but there are some that think it went too far.
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