The Wire

After the Reserve Bank’s latest decision to cut interest rates by a quarter of a percent, the banking sector’s “big four” have been slow to respond. Three of the four banks have now agreed to pass on 0.1 percent of the cut, with the NAB the only bank holding out. Politicians are united in calling on the banks to pass on the full benefit to customers to achieve the desired affect of stimulating the economy. In fact, Treasurer Wayne Swan has said that banks who fail to do so need a “good kick up the bum”, but do analysts agree?