Australia’s big banks are passing on all the interest rates hikes – but not the cuts

While Australia’s big banks have been in step with the Reserve Bank on raising interest rates, they have not passed on all the cuts since June 2019. Photograph: Rick Rycroft/AP

Australia’s big banks are profiting from a period of rapid interest rate increases, with margins getting fatter and share prices rising. At the same time, many households are feeling the strain of rising mortgage rates and inflation-fuelled costs for food and electricity.

While the banks have been quick to pass on the nine rate increases from the Reserve Bank starting in May last year, they did not pass on all of the cuts that preceded it.