More from RBA's Ellis - cash rate and bank rates do not have to move together
Reserve Bank of Australia's Assistant Governor
(Economic) Luci Ellis
- Said there is no law that the cash rate (set by the RBA) and bank rates have to move in step
We had someone in the ForexLive comments make pretty much the same point last week. That is probably where Ellis got that idea from ;-)
It wasn't that long ago Australian banks were hiking some mortgage rates despite the cash rate staying steady or falling, so yeah.