Business

Banks can pass on cut: Analysts

Kieran Salsone

BANKING analysts say the big four have plenty of room to lower interest rates if they choose to.

The Reserve Bank cut the official cash rate to 3.25 per cent on Tuesday, but the big four banks have not yet made a move to lower their rates.

Independent banking analyst Martin North says the gap between the RBA's official cash rate and the average mortgage rate is now much larger than it was before the Global Financial Crisis.

"The actual real interest rate for a household is 150 basis points or more higher than it was pre-GFC, and all of that relates to margin improvement at the banks, the range of risk changes that have happened, and the fallout from the global financial situation," he said.

"But in absolute terms mortgage rates are still not that low."

Read more at ABC news online.

Topics:  banks, cash rate, interest rates, mortgages, rba




Join the Community.

Get your local news, your way.

Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

UPDATE: Another council building evacuated

Clarence Valley Council general manager Scott Greensill talks to the four staff kept in isolation after discovering white powder in a mail delivered to the council records room.Photo Tim Howard / Daily Examiner

Emergency services are responding to another council evacuation

Budget 2016: Tax on smokes to jump 50% over four years

Smokers will be hit with hefty increases in taxes over the next four years.

Small businesses and big earners to get tax cuts

RUGBY LEAGUE: Stormin' Gorman’s triple treat

Ghost Mitch Gorman during the Grafton Ghosts versus Orara Valley Axemen in the Group 2 Rugby League match at Frank McGuren Field on Sunday, 14th June 2015. Photo Debrah Novak / The Daily Examiner

Winger earns North Coast selection after hattrick for Gladiators

Latest deals and offers

Clarence Valley Council evacuation

The Clarence Valley Council chambers in Prince St Grafton were evacuated when white...

Unions protest against education and Medicare cuts

PROTEST: Stephen Fletcher, Sharryn Usher, Darryl Chaffey and Robert Usher perform a stunt outside Kevin Hogan's Office.

Clarence Valley Community unions representative Sharryn Usher led a protest outside...

The McClymonts announce show at Saraton Theatre

THE McCLYMONTS: Mollie, Sam and Brooke are coming home to play at the Saraton Theatre in August.

Grafton's favourite homegrown trio The McClymonts announce a show at the Saraton...

How a sacked real estate agent made $725k in four months

Agent is now under investigation by the industry watchdog

VIDEO: Art Deco fan pays $835,000 for Imperial Hotel

No Caption

Iconic "Impy" sold at a bargan price to bidder who loves Art Deco.

RBA warns of future apartment oversupply

Toowoomba: Crest Apartments and Burke & Wills, Ruthven Street ( view from Neil Street) Photo Bev Lacey / The Chronicle

RBA says oversupply of apartments poses risk to household finances