Australian Interest Rates to Fall, But not Mortgage Rates

Hi All,

Seams like the Reserve Bank of Australia is set to cut interest rates on the 7th October but word is out that the big four Australian Banks (Commonwealth Bank, NAB, Westpac and the ANZ) will not be passing on anyt of the interest cuts due to the current credit crisis and increased funding costs.

We have written about this in the past about the greed of banks but nothing has been done to date and the current Australian Government seams to have riased the white flag on this issue with Wayne Swan the current Australian Treasurer conceeding that;

"What we have seen in recent weeks is a very big spike in borrowing costs internationally and that will certainly have an impact on domestic institutions. I am not going to speculate about what the Reserve Bank will do next week, but we do know when borrowing costs go down rates should follow. Of course, the reverse also happens - when borrowing costs are pushed up and, particularly pushed up sharply, that has consequences."

And while Opposition Leader Malcolm Turnbull disagreed saying banks should pass on the full amount i believe this is more of a voter pleasing stance rather than political view point as he has nothing to lose in this argument.

So there you are, good news - those needing a Australian Mortgage the RBA is going to cut interest rates! Bad News is - Greedy Australian banks are not going to be cutting Australian Mortgage Interest Rates! - Super

Pounds to Australian Dollars currently 2.2370

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