The bank argument that competition for deposits was cutting into interest margins may have been dealt a blow.
Research from News Ltd has revealed the major banks cut three-month term deposit rates by 20bps. Longer-term deposit rates have been cut by 40bps, News Ltd said.
The major banks blamed tougher competition for deposits and higher wholesale funding costs after raising their standard variable rates in February. Westpac boss Gail Kelly told The Australian Financial Review in February that "the biggest cost pressures are from pricing of term deposits".
Banks are not telling funding cost fibs: RBA