Banks effectively ‘betting on’ rates being lower rather than higher in the future

The Motley Fool Chief Investment Officer Scott Phillips says banks are effectively “betting on” rates being lower rather than higher in the future. This comes as Australia’s largest banks are making significant cuts in the interest rates they pay on term deposits ahead of the Reserve Bank. “What the banks are effectively betting on is that rates will be lower rather than higher in the future,” Mr Phillips told Sky News Australia. “They expect mortgage rates to come down.”