After my tirade against the local banks yesterday it is good to see the Big 4 passing on the whole 100Bps interest rate cut to home lenders, albeit with the following statement attached:
But the Commonwealth also echoed the other banks in warning that the high costs of its own borrowing meant it may not be able to pass on future rate cuts in full.
“As the world economic crisis continues and the current pressure remains on funding costs, any future changes in interest rates will need to reflect these higher costs of funds,” CBA said.
“On this basis, we may not be able to pass on in full any future interest rate cuts.”
For the complete story in the Sydney Morning Herald please click here.
I would still like to see the extent of the recent rate cuts being passed on to businesses which have previously been held to ransom a little more than the home loan sector, probably due to the fact that all we really see reported on the front page of the papers concerns the home loan rate.
