The Bank Bill Swap Rate continues to fall, reflecting lower rates here are overseas. This should give the banks more ability to pass on full rate cuts and protect their margins. Remember that a few months we were looking at significant positive swings, now we are ~46 basis points down compared with the low point past year.
Yes, deposit holds are seeing rates being chopped by 25 basis points or more, as banks seek to repair margins and compete for mortgage refinancing. The race towards zero continues….
