Major banks mull over interest rate cut

Australians will have to wait a bit longer to find out if their mortgage repayments will drop as the major banks decide whether they will pass on the Reserve Bank of Australia's (RBA) 25 basis point cut to the cash rate. The RBA on Tuesday lowered the official cash rate by 25 basis points to 3.50 per cent - the lowest level since November 2009 in the aftermath of the global financial crisis. Treasurer Wayne Swan says home borrowers will be "very angry" if the big commercial banks don't pass on the latest central rate bank cut in full. "The banks are very profitable, net interest margins are around the levels that they were prior to the global financial crisis," Mr Swan told reporters in Canberra. "I think that their customers will not treat them kindly if they do not pass this through in full. "I think their customers will be very angry." However, none of the four major banks have said whether they will pass on the RBA's interest rate cut, either in full or part, to their customers. The Commonwealth Bank and Westpac both said their interest rates were under review, while ANZ will make its monthly decision on interest rates on Friday. A National Australia Bank spokeswoman said the bank was still making a decision but it stood by its earlier commitment to have the lowest standard variable rate. Bank of Queensland said it would be lowering its interest rates in light of the RBA's decision, but would not pass on the full cut. BOQ has cut its standard variable rates on its home and business loans by only 20 basis points. Chief executive Stuart Grimshaw said the decision to cut its rates was influenced by global economic uncertainty. "Volatility in overseas markets continues to push up the cost of funds and demand for deposits in Australia," he said in a statement on Tuesday. "Competition for deposits is at an all-time high, but the RBA is trying to encourage consumers to spend, so we're pleased to assist by passing on a 20 basis point cut today."from world news.