Big four stays mum after RBA's rate cut

A standoff between Australia's big four banks is continuing, with the possibility that they won't move to reduce interest rates, Ricardo Goncalves reports.

A standoff between Australia's big four banks is continuing, with the possibility that they won't move to reduce interest rates.

The federal government is urging them to follow the Reserve Bank's 25 basis points cut in the official cash rate.

But some experts say that a smaller-than-expected move by the big four may benefit the economy in the longer term.

Ricardo Goncalves reports.

Interview: Why no rate cut from the Big 4 may help the mortgage market.