Banks will not pass on rate cuts in full

The pressure is on from the property adoring press:

Experts expect the major banks to pass on most, if not all, of a one-quarter of a percentage point drop in the official cash rate to 1.25 per cent at Tuesday’s meeting, which financial markets estimate is an 86 per cent chance.

“They should pass it through,” said Jason Kururangi, a portfolio manager at Aberdeen Standard Investments. “I think that their licence to operate has probably come into question in the last few years.”

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