New Zealand's big Australian-owned banks have retained more than half of a 25 basis point cut in New Zealand's official cash rate on Thursday.The Reserve Bank of New Zealand cut the OCR to two per cent and forecast at least one more 25 basis point cut later this year as it struggles to get annual inflation back up from 0.4 per cent in the June quarter to the bank's two per cent target. RBNZ governor Graeme Wheeler said the bank also wanted the New Zealand dollar to fall, but it rose more than one per cent after the decision because currency markets had priced in the chances of an even bigger cut and more than one more forecast cut.ANZ announced it would pass on just five bps of the OCR cut to its floating rate mortgage customers, while Commonwealth Bank's ASB said it would cut its floating rate by ten bps. Westpac cuts its floating rate by ten bps, while National Australia Bank's BNZ had not announced its rate decisions by Thursday evening. State-owned Kiwibank passed on 20 bps of the cut.The Big Four banks have retained about 15 bps of the 50 bps of OCR cuts in December and March, while their Australian parents retained ten to 15 basis points of last week's 25 bps rate cut by the Reserve Bank of Australia.However, the benefits to net interest margins are expected to be eaten away by the banks also not passing on any of the OCR to term deposit customers. ANZ and ASB actually even increased some of their term deposit rates in an attempt to increase local deposit growth to match strong lending growth and avoid having to access funds from wholesale international markets.ANZ increased its five-month deposit rate by 25 basis points to 3.25 per cent and extended its nine-month special rate of 3.5 per cent unchanged. ANZ also increased its 18-month deposit rate to 3.6 per cent.ANZ Chief Executive David Hisco, who surprised competitors last month by saying Auckland's housing market was "over-cooked" and that ANZ was tightening its lending criteria, said ANZ was refocusing its lending and borrowing emphasis."On the deposits side, we have five times as many customers as those with home loans. Lifting term deposit rates will help customers grow their savings," Hisco said in a statement with the interest rate announcements."We are sending a strong signal today to New Zealanders that at a time of record low interest rates, it is more responsible to pay down home loans and save, than borrow more," he said.Hisco welcomed the Reserve Bank's OCR cut as the right move to protect exporters. ANZ has the biggest exposure to dairy loans of the big Australian banks and dairy farmers face a third consecutive year of unprofitable milk payouts, so are hoping for some relief from a lower currency."Dramatically lowering lending rates would only throw fuel on the fire in an overheated housing market. That would be irresponsible and negate any economic benefit to New Zealand and drive