CBA needs to keep future rate cuts
The Commonwealth Bank has signalled that it may not pass on in full to borrowers any future rate cuts delivered by the Reserve Bank of Australia.
The bank's chief executive Ralph Norris said at the yesterday's half yearly profit result that margins had declined and the cost of borrowing had risen for bank.
Norris reported a $2.57 billion profit and a big increase in fees and said the bank may retain some of the rate cut to protect profit margins.
"We have consistently passed on more rate cuts, more quickly than our competitors," said Norris who commended the government for legislating a three year bank guarantee.
Source: The Australian