Rate cut stalemate continues

by Adam Smith08 Dec 2011

The standoff over interest rate cuts drags on as most lenders have appeared unwilling to budge in the wake of Tuesday's RBA move.

Comparison site RateCity has claimed that only 6% of more than 110 lenders have made any move on rates since the Reserve Bank cut the official cash rate.

Pressure and stern words from Treasurer Wayne Swan have also failed to prompt action on the part of the banks, and notable holdouts include the big four, Bankwest, Citibank, ING Direct and St. George.

RateCity chief executive Damian Smith has urged borrowers to desert their lender if the rate cut stalemate continues.

"There is really no need to stick with your current lender if they aren't willing to budge on interest rates or they aren't one of the most competitive on the market," he said.

Bank of Queensland, ME Bank and Heritage have been among the few lenders to announce they will pass on the full 25bp cut to borrowers.

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