interest rate disparity between RBA and major australia banks custom essay

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All through 2011 and since the start of the year 2012, there has been extensive media coverage about the state of the Australian economy and RBAs role in promoting public confidence. The RBA tries to influence the economy by raising and lowering the cash rate with a view to keeping some economic parameters in a narrow range: such as unemployment, inflation etc. Despite the RBA lowering interest rates by 25 basis points many times, the commercial banks have not reduced their interest rates by a similar amount.

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