Mortgage brokers are confident that Australia’s banks will pass on in full any rate cut the RBA makes over the coming months.
Speaking to The Adviser, the sister publication to Real Estate Business, Elders Home Loans’ Brad Quilty said the banks desire for market share would push them to pass on any rate cuts made by the RBA.
“The banks have been very competitive and made no secret of the fact that they want more business. So I don’t see any reason why they wouldn’t pass on a rate cut in full.”
Brett Coombs from Chase Loans agreed and said the banks would see any rate cut by the RBA as an opportunity to move even further on rates.
“The banks have been cutting rates in recent months independent of the RBA and I think this trend would continue if the Reserve Bank did opt to cut the official cash rate.”
There has been a lot of speculation that the Reserve Bank may cut rates as early as November, with the RBA becoming increasingly dovish in recent months.
The RBA has maintained its focus on the challenging international financial and economic environments and the impact that uncertainty is having on confidence globally.