Bank rate hikes may force RBA to cut rates

A poll by Loan Market has found that 44% of borrowers believe the recent decision by lenders to move independently of the Reserve Bank will prompt the RBA to cut the official cash rate on Tuesday.

Twenty-seven per cent believed the bank rate hikes will at least play a factor in the RBA's decision.

A Loan Market spokesman predicted a cut by the RBA next week would “put a lot of pressure on lenders to follow suit” despite bank claims that the cost of funding has become increasingly detached from the cash rate.

Source: Australian Broker News