Why the Fitch bank ratings review means no mortgage rate cut

Australia’s majorbanks have been given a helping hand in their case to distance their interestrate decision from that of the Reserve Bank.

Fitch placed the credit ratings of Australia's big 4 banks on watch negative yesterday, noting their reliance of wholesale funds, a point Australia's banks have been trying to make for some time.

While it's nothing new, it reinforces their stance at a time when interest rates are bounced as a political football.

To explain, I spoke with banking analyst, Brian Johnson from CLSA.