Second tiers have followed on the rate cuts flowing through from the major banks, but only one has passed on the full RBA cut.
Bank of Queensland last week became the first bank to move in the wake of the Reserve Bank's cut to the official cash rate, cutting 20bps from its rate. Mutual Unicredit WA has thus far been the only second tier lender to pass along the full 25bp cut. Westpac brands St. George and Bank of Melbourne have both moved on rates, but neither has passed along the full cut.
St. George has trimmed 18bps from its standard variable rate, taking its rate to 6.86%. The move leaves the bank's rate 3bps lower than its parent company Westpac, but higher than the other majors. Bank of Melbourne has also announced cuts, dropping its rate by 19bps to 6.80%.
ING Direct pre-empted moves by the majors last week, cutting 20bps from its rates to bring the lender's Mortgage Simplifier variable rate loan to 6.22%.
Suncorp has also reduced rates, cutting its standard variable rate by 20bps to 6.88%. ME Bank has passed on the smallest reduction thus far, cutting rates by 16bps, but chief executive Jamie McPhee has argued that the lender's rates are more than 50bps lower than those of the nearest major bank.
"The major banks have decreased their rates by less than 0.62% p.a. between November 2010 and June 2012, while ME Bank has decreased its rates in the same period by 0.71%," he claimed.
Majors round out rate moves ...