ANZ has become the only bank out of the big 4 to pass on the full rate cut to its borrowers after the Reserve Bank’s rate cut last week.

Its rivals Westpac, National Australia Bank and Commonwealth Bank went against Treasurer Wayne swan’s appeal to pass on the cut to boost their profits.

"The heat is really on the other banks, and if they don’t do the right thing we’ve made it much easier for their customers to walk down the road and get a better deal," Mr. Swan said.

The other three big banks cut their lending rates by 20 and 21 basis points, citing funding pressure for withholding full relief ahead of a volatile global economy fueled by problems in Europe.

The cuts in Australian mortgage rates will save homeowners $40-$50 on monthly repayments of a $300,000 loan.

ANZ has said that the bank would continue to set its rates on a month-by-month basis after passing the benefit of the rate cut to its borrowers.