Attention will now shift to the banks as we wait to see how much the lenders cut interest rates, and how soon this will happen. Yesterday’s cut leaves the RBA’s cash rate is at its lowest since December 2009 when the economy was recovering from the initial impact of the GFC.
The Bank of Queensland has been the first bank to reveal its plans – passing on just …35 of the 50 basis-point cut followed by a 0.32% rate decrease by NAB this afternoon. Economists have confirmed that it looks as though the RBA’s hefty 50 point rate cut suggests that they don’t expect the banks to pass on the full rate reduction to their customers.
I know I’m keen to see what happens next week!