$5.6 million daily rip-off by the big four banks on mortgage

Although the government repeats its demands they pass on the interest rate cuts, none of the big four banks – ANZ Bank, Commonwealth Bank, National Australia Bank or Westpac – has revealed the results of their reviews of their interest rates almost two days after the RBA’s rate reduction on 06/12/2011.

Australia’s big four commercial banks stand to reap an extra $5.6 million in pre-tax profit for each day they hold off passing on this week’s interest rate cut to borrowers, according to one industry estimate. This is supported by rate tracking agency Mozo’s own calculations.

To date, Bank of Queensland and MEBank have passed along the full 25 basis point cut to their customers, as have a slew of credit unions.

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