The Commonwealth Bank has joined NAB in passing on only 20 basis points from the latest rate cut.
Yesterday, the Reserve Bank lowered the official cash rate target by 25 basis points to 3 per cent - the lowest level since 2009 and equal lowest since the RBA first published a target in 1990.
NAB was the first of the major banks to announce its rate reduction in response, saying this morning that it would chop 20 basis points off its standard variable rate to leave it at 6.38 per cent.
The Commonwealth Bank has again passed up the opportunity to undercut one of its big four competitors and undermine NAB's marketing campaign by bettering its rival's rate.
Instead, CBA has matched NAB's 20 basis point cut, leaving its standard variable rate a touch higher at 6.4 per cent.
The bank says the move balances the needs of all its stakeholders.
"In making this decision, the group has continued to balance the needs of 1.8 million home loan borrowers with those of its 11 million depositors and its shareholders, who include 800,000 Australians who own its shares directly, and millions more Australians who own shares through superannuation funds," it noted in a statement.
However, the bank gave no indication in the statement of how much deposit rates may be reduced.
Both the CBA and NAB rate cuts are effective from Monday December 10.