Banks say no to passing on full rate cuts

Banks may not pass on the full amount of any rate cut delivered by the Reserve Bank says Westpac chief executive Gail Kelly. "The costs of funding have continued to go up," she said on the Seven Network's Sunrise program.

NAB has already confirmed it may not pass on in full the Reserve Bank's rate cuts. Commonwealth Bank CEO Ralph Norris has also not committed to passing on rate cuts. The Reserve Bank board meets tomorrow, with economists evenly split on the what the bank will do with official interest rates.

Source: The Sheet