The Reserve Bank of New Zealand has cut its official cash rate to a record low 1.75 per cent, but forecast this was likely to be the last cut and accepted it was unlikely to be passed on to borrowers and savers by banks dealing with higher funding costs.RBNZ governor Graeme Wheeler told a news conference after the release of the bank's November quarter Monetary Policy Statement that banks' lending growth currently exceeded growth in term deposits, which made it difficult for banks to pass further reduce mortgage and deposit rates."So you are starting to see some upward pressure on deposit rates and you are also starting to see some increase in mortgage rates," Wheeler said."So it's possible that we may not see a lot of adjustment in terms of lending rates," he said.National Australia Bank's BNZ announced shortly after the 25 basis point cut that it would not change its rates."It's a good time to remind people that interest rates aren't directly or solely linked to the OCR," said BNZ's acting director of retail and marketing David Bullock."Banks get their ability to lend from a few sources, most of which are getting more expensive and putting pressure on margins," he said, adding that banks needed to offer relatively high rates to depositors to encourage savings.Westpac New Zealand also announced it would not be cutting interest rates. "On-going rises in the cost of offshore funding provide no opportunity to lower home loan rates at this time," said Simon Power, Westpac's general manager for consumer bank and wealth. Commonwealth Bank of Australia's ASB and ANZ made no comment.