“Interest rate cuts” are words that mean so many different things to so many different sectors of the economy.
The Reserve Bank has dropped interest rates by 0.25% and banks are under pressure to pass on the cuts just in time for Christmas spending.
The Bank of Queensland has responded and so have ING. Three of the Big Four – NAB, Commonwealth and Westpac have dropped their rates by 0.2%, almost, but not quite the full amount.
To talk to us about what this might mean, Hans Kunnen, Chief Economist with St George Banking Group spoke to Angus Randall.
Producer: Sue Reece