The big banks are tipped to hold back some of the benefit of any official interest rate cut from their customers as the lenders try to ease pressure on their profit margins.
Mr North said that as the cash rate was cut from the current 1.5 per cent rate, the banks would pay their depositors even less in interest but there was a limit to how far it could push that down."That may make it difficult for the banks to pass on all of any cut to the cash rate," Mr North said. While Commonwealth Bank of Australia said it constantly monitored its loan portfolio "to ensure we are maintaining our prudent lending standards and meeting our customers’ financial needs".
"The public pressure would be too high for them to hold it all back, but the banks are under pressure and are looking for ways to increase profitability," Ms Lamont said.
Aussie dollar will drop in price if rba drops rates so no chance that banks will pass on much of rate cut
When did the banks start doing their own thing with interest?