"Certainly the advertised headline rate will be dropping 25 basis points [or 0.25 per cent], but that may not translate in real life to real accounts," he warned.The Australian Banking Association's chief executive Anna Bligh echoed that advice, telling the ABC that individual banks had to weigh up a range of factors in setting various mortgage rates, including the effect on savers of cutting deposit rates.
Mr North's most recent surveys show customers are anxious about whether or not they will receive a rate cut from their bank. "Other people who have just recently taken out these really cheap loans may discover that they can't get another 25 basis points off their already cheap loan.Of course in better economic times, when the Reserve Bank was applying the brakes to the economy and raising interest rates, history shows the big banks were very quick to pass on higher rates to borrowers.
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