Are the banks now playing chicken?

Ok, the OCR was lowered again last week. It is now down to 2.5%.

The banks have ...

...done nothing.

Not even the floating rates have dropped.

Now either the banks are playing some sort of game or the Reserve Bank has lost its ability to affect interest rates.

One of those prospects could be very worrying.

I wouldn't like to be in Bill English's shoes right now. Maybe that is why Trevor Mallard is now on the Government's front bench.

It is duck season after all.

Perhaps National is hoping to distract Labour into building a maimai on the opposition benches instead of aiming their guns at the Budget due out in just over 3 weeks.