04 July 2012 6:57am

Financial institutions have cut their deposit rates more than their loan rates over the past two months.

The latest Reserve Bank indicator lending rates, published yesterday, show that standard variable mortgage rates fell by an average of 35 basis points in May and 20 basis points in June. Lenders in the RBA data series passed on a total of 55 of the 75 basis point cut in the cash rate in May and June to mortgage borrowers.

The average standard variable mortgage rate is now 6.85 per cent and the average discounted variable rate is 6.15 per cent.

Small business...