Reserve tells banks to pass on rate cuts

Bank funding costs have eased and they are expected to pass on in full any future interest rate cuts said the governor of the Reserve Bank Glenn Stevens yesterday.

NAB and Commonwealth Bank have both indicated that they may not pass on future rate cuts in full to their customers. Both banks said their funding costs were still very high.

Economists are expecting a rate cut of 0.5 per cent in April

Source: Herald Sun

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