Customers may wait for a change in repayment amounts
(14 May 2013 – Australia) Customers may have to wait a week or two for banks’ interest rate cuts until the cuts actually take effect.
All the banks announced last week they would pass on the full rate cut from the Reserve Bank of Australia (RBA), with ANZ passing on slightly more of a cut, but putting it into effect a week after its decision.
The Commonwealth Bank of Australia (CBA) and National Australia Bank (NAB) are the quickest to pass on the latest cut, both took effect on Monday.
Westpac's cut, also of 0.25 percentage points, will not take effect until next Monday; almost two weeks after the bank announced its decision.
Westpac is likely to net roughly A$2 million a day until the cut is passed through.
A spokesman for Westpac said: ''Our decisions are based on providing certainty to our customers who know clearly when their monthly repayment amounts will change.''
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