Banks delay passing on rate cut

The big banks are so far refusing to pass on yesterday's 25 point interest rate cut by the Reserve Bank to 3.25 per cent – its lowest level in three years.

The decision will see repayments on the average mortgage of $300,000 drop by almost $50 a month, if banks decide to pass on the cut.

The big banks will pocket more than $6 million in profit every day they fail to pass on the Reserve Bank's 25-point rate cut to mortgage holders. Treasurer Wayne Swan has demanded they do the right thing and pass on the 0.25 per cent cut in full.

Source: Herald Sun