Australian banks cut interest rates

Three retail banks in Australia lowered their interest rates on Friday.

Westpac, NAB and the Commonwealth Bank all passed on some of the latest cut in interest rates by the Reserve Bank of Australia to 3.25% on Tuesday.

The ABC reports NAB announced on Friday afternoon that it will lower its standard variable mortgage rate by 20 basis points, effective from Monday.

A short time later, the Commonwealth Bank matched NAB's move, with a cut of 20-basis-points, effective next Friday.

Shortly before the close of trade Westpac announced it would cut its standard variable mortgage rate by 18 basis points to 6.71% from next Friday.

Treasurer Wayne Swan said customers will punish the banks for failing to pass on the RBA's rate cut in full.

Earlier this week, CLSA banking analyst Brian Johnson told the ABC that the major banks had plenty of scope to cut rates.

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