Analysts are arguing banks should not be required to pass on cuts in full considering saving rates are very low.

Research from RateCity has found more than 47 banks have dropped their savings rates.

Economists are predicting the Reserve Bank of Australia will pass on two more rate cuts by the end of the year.

But according to RateCity, the big four banks are now offering savings rates as low as 0.30 per cent.

RateCity Research Director Sally Tindall tells Ross Greenwood people are receiving less interest on their savings as a result.

“It’s pretty scary when you look at what the big four banks are offering.

“I can only imagine what that’s going to get to if the RBA cuts again.”

Click PLAY to hear the full interview

CoreLogic Senior Research Analyst Cameron Kusher tells Ross Greenwood he believes the banks will not be passing on full rate cuts.

“There are an awful lot of people that are actually saving, and don’t have a mortgage, and there needs to be some incentive for them to save.

“As interest rates come down there’s less of an incentive for them to save and more of an incentive for them to go out and spend.”

Click PLAY to hear the full interview