Examining the RBA's deep cuts

The debate about the degree to which 'greedy bankers' pass on rate cuts is getting out of hand. Since the GFC, bank margins on loans have shrunk, and the RBA cuts deeper to get mortgage rates down.

Can we please stop the inane discussion about the extent to which the banks pass on Reserve Bank changes in official interest rates?

It is irrelevant to the macro-management of the economy and to the end point of what interest rate borrowers actually end up paying and what deposit rate savers end up getting.

Want to know why?

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