Low inflation level - rate cut next week?

Discussion in 'Property Market Economics' started by Observer, 27th Jul, 2016.

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  1. Perthguy

    Perthguy Well-Known Member

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  2. big max

    big max Well-Known Member

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    It will flow through to the economy one way or another.

    Also note that even if banks just pass on 15 bps, is off a much lower prior rate, so %age wise people's loans may actually drop more than say passing on 25 bps on a higher interest rate.

    Also, just because only some is passed on right away does not mean more will be passed on later. So a bank might pass on 15bps now then 5 in 3 months then the remainder in 6 months, giving each themselves a bit more room to profit. Over time it will filter through.
     
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  3. fullylucky

    fullylucky Well-Known Member

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