ANZ's boss says every bank will make its own decisions on how low to go with interest rates

Banks have lowered advertised rates in response to yesterday's OCR cut, but most haven't cut interest rates by the full 25-basis-points.

The Reserve Bank says banks have scope to lower interest rates further if they want to.

But Antonia Watson says several factors are considered when deciding what interest rates to offer.

She says it's a competitive market, and they make their own decisions based on their balance sheet and what they need.

Antonia Watson says what factor in ANZ's decision was that it didn't want to cut its deposit rates as much.