Garrett says the RBA
's own figures show that the banks have withheld 0.4% of the 1.75% in RBA
rate cuts since 2011 and that a large chunk of households are using mortgage rate cuts to pay down existing debt rather than adding to spending in the economy.
Real estate agency Laing+Simmons general manager, Leanne Pilkington, says she’d like to know what the RBA is waiting for.
"As former Reserve Bank governor Bernie Fraser recently noted, the big four banks have the means and the scope to cut their mortgage rates and still turn a very handy profit for their shareholders. There is even speculation the banks are considering reducing their mortgage rates independently, a scenario almost unheard of in the modern era.”
Even if the RBA’s influence over the major banks is loosening, Pilkington says it ‘can’t hurt’ to provide the banks extra impetus to ease the burden on mortgage holders – especially if they’re weighing up the option anyway.