The trading banks have been slow to pass on yesterday's surprise cut to the Official Cash Rate.
The Reserve Bank caught most people off guard by cutting the OCR by 0.25 percent to 2.25 percent. It is the reason that within minutes of the announcement the New Zealand dollar fell a full cent against the American dollar, trading at 66.5 US cents.
The Co-operative Bank cut its floating rate by 0.25 percent and ANZ trimmed its floating rates by 0.10 percent.
ANZ says rising costs are the reason it has not passed on the full 25 basis point cut in the OCR.
But the Reserve Bank says it expects all the trading banks to pass on the full cut in the OCR.
Economists at ANZ are now predicting that the OCR will be 1.75 percent by Christmas.