As the recent global financial crisis and the CL Financial debacle harshly illustrate, consumers who can make informed decisions about financial products and services not only serve their own best interests, but collectively they can also help promote financial stability.
Another consideration in a falling interest rate scenario could be that banks might want to protect their profit margin through a more sluggish adjustment of their lending rates. Notwithstanding various complexities, the interest rate channel of monetary transmission has been evident over the monetary policy cycles in the recent years.