Aussie banking association head: RBA interest rate cut would be passed on to mortgage holders

According to the Sydney Morning Herald, Australia's Bank Association chief executive officer Anna Bligh said Monday that if the Reserve Bank of Australia (RBA) cuts rates, the banks would pass it on as much as possible to mortgage holders while also taking into account those people saving money.

The RBA is expected to cut rates to a new record low of 0.15% on Tuesday from 0.25% and boost bond purchases. With the global economy facing the threat of another coronavirus-induced economic contraction, the central bank has little option but to provide more stimulus to its economy. 

If the banks pass on the rate cut to mortgage holders and others, consumer spending could remain resilient in the Christmas season.