Steve M. from the Australian Bank Association will speculate on what the banks will do but he's told news Breakfast they do have social obligations.

One of those obligations is to keep our banking systems safe and stable. Just to give you an example, we follow the reserve bank as people ask us to, as the treasurer asks us to through the global financial crisis the first part of that. The Reserve Bank has calculated the banks in Australia will actually have been making losses. We would have banking systems look like the European banking systems. We do have responsibility to pass on as much of that cut as we can. But we have a very responsibility to make sure that system remains safe that we can continue to raise money overseas and in Australia to keep lending to businesses and to people buying houses.

Let's go to the markets. And Dow Jones closed up 26 points overnight. The NASDAQ rose 18. S&P 500 also up by 7. The London Stock Exchange was closed again for the Jubilee Holiday. Checking commodity prices, West Tax Crude is trading at 84 dollars a barrel. Tapis Crude 104 Us dollars a barrel. And gold is 1617 Us dollars an ounce. The Australian dollar is buying 97 Us cents, 78 Euro cents and 63 pence sterling.