Banks’ Rate Cut – Not

The RBA’s recent rate reduction of 25 points was ‘passed along’ by the big banks.  Or was it?

Prior to the RBA’s announcement earlier this month, the banks had increased the discounts they offer to the most creditworthy.  A full 1% discount to standard variable home loan rates was available then, but following the RBA’s move, the best discounts were reduced, and the end result is a cut of as little as 5%.

So, while the politicians (and public?) think they’ve gotten a big break, it just ain’t so.

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