One and done?
The RBA has finally delivered the rate cut millions of Australians have been hoping for. Just don't expect a string of further easing to follow.
Westpac’s announcement that it was cutting its variable home loan rate by 25 basis points to match the Reserve Bank of Australia’s interest rate cut hit Capital Brief’s inbox at 2.31pm. The Commonwealth Bank’s landed 90 seconds later. ANZ and NAB were not far behind them.
The Reserve Bank’s own email confirming the cut didn’t arrive until 2.32pm (though the actual announcement through other channels was on time). In any case, all of the major banks had responded to the RBA faster than anyone we spoke to could remember, even during the dark days of the Royal Commission.
Typically, it can take hours, even days for lenders to pass on RBA rate cuts. Not in 2025, which is telling. The big four banks are already punching bags in a febrile political environment and want zero part in the shenanigans that will accompany this move, especially on the eve of a federal election.
In this environment, no bank wants to be seen as making record profits and being focused just on its shareholders when many in the community are still doing it tough. Why stick your head above the parapet when politicians are always looking for easy targets to distract attention from their own actions which may be unpalatable?
