Glenn Stevens yesterday announced the RBA’s decision to cut the cash-rate by 25 basis points (or 0.25%) after great speculation in the economics community about Australian confidence in the face of global economic tension.
Hans Kunnen, the Chief Economist from St George Bank gave his reaction to the rate cut, and believes that the big banks will have to pass on at least some of it to customers. He also discussed his view on the alleged improper lending practices of some banks of some banks and lenders that appear to be similar to those that led to the sub-prime mortgage crisis in the United States.
Producer: Bill Walter
