2 September 2008
The Reserve Bank and rates
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When the Reserve Bank board meets on Tuesday, it's expected to cut interest rates by .25 per cent. If so, it will be the first relief home buyers have had in almost seven years. The last cut was back in December 2001, when rates were at 4.25 per cent.
While some of the banks say they will pass on any official rate cut, others are yet to decide. Their responses will be closely watched by members of a Federal Parliamentary inquiry that's currently taking submissions on competition in the banking sector. Treasurer Wayne Swan has already warned the banks that he wants them to make it easier for borrowers to compare loans and to transfer between banks. So what pressure is now on the banks to comply? And what effect will interest rate cuts have? Are they too late? Is the looming global economic downturn about to be felt in Australia?
Guests
John Hewson
Economist
Joshua Gans
Professor of Economics, Business School, Melbourne University
Christopher Zinn
Spokesman, consumer group, Choice
Mark Bouris
Chairman, Wizard Home Loans
Wilhelm Harnisch
Chief executive, Master Builders Association
Further Information
Inquiry into competition in the banking and non-banking sector
Presenter
Paul Barclay
Story Researcher and Producer
Debra McCoy
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