Where's the value in a rate cut?

The kerfuffle that has broken out over the big four's latest rate moves misses the point – a reduction in the cost of money is irrelevant if no one can get access to it.

There’s been a big commotion about the major banks and their decision to cut rates in line with the Reserve Bank, but why is everyone assuming the banks actually want to lend money? And to whom does the extra 25 basis points matter anyway?

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