Big banks tight-lipped on rate cut


Mortgage holders are still in limbo about whether they’ll benefit from yesterday’s quarter of a percentage point interest rate cut.

The big four banks have not yet revealed if they’ll pass the full cut on.

Hayley Robertson reports.

TRANSCRIPT

Treasurer Wayne Swan says the big banks have no excuse not to pass on rate cuts and experts agree.

Louis Christopher, SQM Research: “The banks, not only should they be passing it on in full, they should be passing on a little bit more.”

So far only the Bank of Queensland has cut rates by 0.2 per cent, and today the majors weren’t making any promises.

Craig James, CommSec Economist: “Funding costs have increased and they can only do so much.”

The banks are making $6 million every day they hold out on a decision and finance commentators say this won’t sit well with mortgage holders for long.

Rohan Gamble, Mozo Managing Director: “Traditionally we’ve always had our banking with one big bank and we don’t need to do that anymore.”

And the full rate-cut is worth it for mortgage holders.

It means a saving of $63 per month for a $400,000 mortgage, $47 for 300,000, $31 for 200,000 and $15 a month on a $100,000 mortgage.

Hayley Robertson, QUT News.