THE major banks have again been reluctant to pass on to farmers last week's 0.75 per cent cut in official interest rates.

While the four "majors" cut their variable home rates last week by up to 0.65 per cent, only one has so far cut business lending rates - the National Australia Bank by 0.4 per cent.

The other three - Westpac, the Commonwealth and ANZ - said their business rates were "under review", although Westpac has cut its business credit card rate.

The development follows a similar reluctance to pass on last month's cut.

Only Westpac moved immediately then, passing on 0.8 per cent to business borrowers, while most of the others made lesser cuts later in the month.

Bank executives said they still faced high financing costs due to the global credit crisis, making them cautious in adjusting their lending rates.

Prime Minister Kevin Rudd urged the banks to pass on as much of the official rate cuts "as rapidly as possible to all their customers".

But Victorian Farmers' Federation president Simon Ramsay said the banks should pass on the full rate cut and called on the Government to hold the financial sector to account.

Among the specialist rural lenders, Rabobank has moved quickly to pass on a large part of the reduction as it did after last month's 1 per cent official rate cut.  It has cut its business rates by 0.6 per cent as from next week, after an 0.8 per cent cut last month. Elders Rural Bank was reviewing its rates yesterday.