> > It only reduces their revenue if they pass on the rate cut to their
>> borrowers.
>
>As I understand it, in the case of "tracker" mortgates the effect is
>immediate, the rate only needs be passed on in the case of 'variable rate'
>mortgages, and new mortgages.
I don't know where "tracker" mortgages are available. Here, there are fixed and variable mortgages.
>Which, to me, illustrates that the issue is with demand for debt, not
>supply as has been claimed by some here and in almost all the media.
>Qualified borrowers are what is scarce, not available funds.
In a sense I suppose. But only in the sense that that the qualifications needed to be approved for a loan have undergone hyper-inflation of Zimbabwean proportions. Even multi-national banks are having great difficulty qualifying, only governments seem to be considered even moderately qualified.
You might choose to interpret that as a shortage of borrowers, in the same way as the employer might choose to interpret a shortage of people willing to accept a job paying one-tenth of the minimum wage as a "shortage" of workers. In both cases the interpretation must be considered an ideological one.
Bill Bartlett Bracknell tas