Big banks rake in $14b by not passing on rate cuts in full

Australia's big four banks are raking in an extra $14 billion a year by not passing on rate cuts in full, according to new data. The figures show standard variable rates for mortgages have fallen by 2.99 per cent since October 2011, yet over the same period the Reserve Bank has reduced the cash rate by four per cent. Prime Minister Scott Morrison criticised the banks for refusing to pass on the latest interest rate cut in full - accusing the banks of 'profiteering.' The RBA lowered the officials cash rate by 25 basis points last week to a record low of 0.75 per cent, but the big four banks have only cut between 0.13- and 0.15 per cent.

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