The deputy governor of the reserve Bank, Ric Battellino, said if banks did not pass on rate cuts to customers, the Reserve would keep cutting rates until they did. "The important thing is not the [official] cash rate but what the level of interest borrowers are paying," he said. Households had responded "prudently" to higher interest rates said Mr Batellino by cutting spending and boosting savings. The Commonwealth Bank said it would pass on at least part of any rate cut. Treasury officials revealed they had knocked back a more ambitious transferable account-number plan.

Source: Sydney Morning Herald