QCEVault

Economic management — Question 61

Original QCE Vault practice · 5 marks

Q61 · Practice questionComplex familiar5 marks

QUESTION 61 (5 marks)

A bank lowers its variable mortgage rate from 6.20% to 5.95% after a 50-basis-point cash-rate cut. A household has an interest-only mortgage of $480 000. Calculate the pass-through share and monthly interest saving. Explain why the cash-rate change does not produce an identical change in every retail rate.

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