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ANZ CEO defends not passing full interest rate cut

The ANZ CEO says they have done the right thing by their bank after being criticised for not passing on the interest rate cut in full.

Today the Reserve Bank of Australia announced the official cash rate will drop by 0.25 per cent.

The Commonwealth Bank and the National Bank of Australia will pass the rate cut in full but ANZ will decrease variable home loan rates by 0.18 per cent.

Treasurer Josh Frydenberg has said he is “deeply disappointed” with ANZ’s failure to pass the full rate cut.

ANZ CEO Shayne Elliott tells Ross Greenwood their decision was best for the bank.

“The deposit market at the moment… you can’t keep taking away from depositors and giving to borrowers.

“We didn’t all start with the same rate, we had the lowest rate in the market already, so we started lower.

“We have to do what’s right for ANZ… and that’s what we did.”

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