Banks may cut rates themselves

Some industry experts are claiming banks may choose to cut home loan rates independently of the RBA to spur home loan demand.

Loan Market spokesman Paul Smith said: "With the cost of funds pressure easing for many lenders, there’s an opportunity for them to make adjustments to their variable rates in attempts to attract new customers. The action or inaction from lenders in the following weeks could be indicative of what’s in store for interest rate movements over the next several months.”

The Housing Industry Association chief economist Harley Dale said: "Financial institutions could themselves assist domestic economic prospects by providing interest rate relief they held back from businesses and households last year.”

Source: Broker News