Customers wait for banks to pass on rate cuts

Customers of the Commonwealth Bank and Westpac will be waiting more than two weeks for their mortgage interest rates to fall after this week’s official rate cut, a delay that is likely to boost each bank’s income by about $2 million a day.

The country’s two biggest banks announced standard variable rate cuts on Wednesday, with the CBA matching the Reserve Bank’s 0.25 percentage point reduction. Westpac lowered its advertised rate, which has been the highest of the big four for several years, by 0.28 percentage points.