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RBA rate cuts may fail to ease mortgage pain | The Australian
http://www.theaustralian.news.com.au/story/0,,24031524-25658...
Submitted by
FireApple
1 month, 2 weeks, 6 days, 15 hours agoIT was a simpler world in December 2001, when home owners were last able to celebrate a fall in their variable mortgage rates after a 25 basis point cut in official rates.
Six and a half years later, official and unofficial rates are no longer moving in lockstep, raising the unpleasant prospect of delayed mortgage relief even if the Reserve Bank starts to reverse the cycle of 12 consecutive rate increases.
#1 - By Casso, 1 month, 1 week, 5 days, 13 hours ago.
Good post - and not suprising. I read a report a while ago saying that the banks are actually absorbing about half the cost increases from the credit crisis... My assumption then is if the RBA wants to relieve businesses / home owners, then they will have to drop interest rates by MORE than the increase in credit costs.
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