🚀 go-pugleaf

Now we hear (again) that the banks "cannot" pass on the Reserve Bank
official interest rate cut because (apparently) a lot of their cost of
borrowing is not actually related to this official rate.

Surely that means that every single rate *increase* that was previously
passed on in full was a total lie as a lot of the funds that the banks
sourced to lend out were also not related to the RBA rate?

Talk about "having your cake and eating it to", after years of ripping-off
borrowers by sourcing cheap funds overseas to create record bank profits
they now use this reality to keep *their* profits at record levels as
official rates fall!

I would also speculate that every variable bank deposit rate will be cut,
so the cost of these funds will drop further boosting the bank profits.

If the RBA rate cuts end up going straight into bank profits and don't get
passed on and have their intended "stimulus" effect in the economy, they
why would the RBA bother to make any more cuts in the future?

If only us poor retail customers could borrow directly from the RBA at
those juicy low rates...

-- 
Regards, David.

David Clayton
Melbourne, Victoria, Australia.
Knowledge is a measure of how many answers you have, intelligence is a
measure of how many questions you have.