Full OCR cut should be passed on: McLachlan

"Our logic was to do the right thing for our customers which we believe there was no reason not to pass on that 25 base point cut to our customers. We didn't deliberately set out to be first, it was just out of the process that we normally do. It just so happens that others were slow rather than we were quick, I think," he says.

"We are small and nimble though. So we can, when we're surprised, we're able to get the people together quite quickly and make a good decision without having to go through a bureaucratic system which might take days.

McLachlan has described the OCR cut by the Reserve Bank Governor Graeme Wheeler as a "deliberate action to surprise the market."

"Why? He knows a bigger reaction will get the currency down. He's really desperate to get that down which is the key for him to re-balance the things he needs to get inflation to the level that's within his band."