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.

‘We’ve found him’: A Current Affair tracks down Attwater

The DAVIS and DALEY family members attended Nine Mile Beach on Saturday 2 April 2011 and erected a cross in the memory of Lynette "Norma" DALEY.

"Get your story f**king straight mate. No one left anyone."

Appeal for information over Iluka child approach

Generic polic sign Photo Contributed

Girl riding scooter on Long St, Iluka, approached by man

60 years of drive behind them

A doff of the hat from Kevin and Joyce Brooks as they prepare to take off in their 1914 Humberette veteran car.

A Veteran car club visited the Clarence Valley this week.

Latest deals and offers

Schools rally behind Gonski

Staff from Grafton Public and High School, Westlawn Public School and Induna School joined community members at Grafton Public School to hear from the President of the Australian Education Union Correna Haythrope talk about Gonski.

Teachers, principals and community members met at Grafton Public School this...

How to peel a potato fast

There is a fast way to peel potatoes.

You've been doing it wrong all this time.

Johnny Depp thinks Barnaby Joyce is inbred with a tomato.

Johnny Depp on Jimmy Kimmel Live.

Johnny Depp explains his apology video on Jimmy Kimmel Live.

Perfect time to invest in Northern Rivers property

The Northern Rivers rental market is tighter than Sydney making it the perfect time for investors to get better returns out of property than superannuation or banks deposits.

Low interest rates and tight rental market are prime time to invest