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Brokers should not expect any further rate cuts to have a significant influence on mortgage rates, NAB chief Cameron Clyne warned yesterday.
Mr Clyne said the official cash rate had only a limited impact on banks’ funding costs and said greater understanding of how banks source their funds was needed within the community.
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"The Reserve Bank cash rate is only a very small component of how we are funded," he said yesterday according to The Daily Telegraph.
"It is incumbent on all of us to have an informed debate about interest rate movements and funding costs because if we are continually creating the perception that the Reserve Bank cash rate movements are the driver of bank interest rate movements, I think we will create a very difficult situation.”
Mr Clyne also emphasised that funding costs were going up and that the bank would move its rates in line with those costs, not RBA movements.
