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Treasurer ‘disappointed’ as banks refuse to pass on interest rate cut

Treasurer Josh Frydenberg says he is disappointed the big four banks have defied his plea to pass on the full interest rate cut.

On Tuesday the Reserve Bank of Australia cut interest rates to a new historic low of 0.75 per cent.

Westpac has lowered its variable rates by 0.15 per cent while ANZ said it would lower rates between 0.14 percentage points and 0.25.

The Commonwealth Bank of Australia announced it will cut rates on standard variable mortgages by 13 basis points and rates on interest-only investor home loans will be reduced by 25 basis points.

The National Australian Bank vowed to cut rates by 0.15 percentage points.

Mr Frydenberg tells Karl Stefanovic the banks have a lot to answer for.

“I’m very disappointed. We would obviously expect the banks to answer to their customers as to why they haven’t passed this rate cut in full.

“This is a pattern of behaviour from the banks.”

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Image: Getty/Tracey Nearmy