The economic slowdown and the prospect of another interest rate cut is expected to be reflected in quarterly growth figures out today.
The Reserve Bank cut the official cash rate by a quarter of a percent yesterday, the first such cut in seven years.
But the head of Australia's largest bank has warned he can't rule out more interest rate rises despite the economic slowdown.
Commonwealth Bank CEO Ralph Norris says with nearly 40 per cent of loan funds borrowed offshore, their rate won't directly reflect the official RBA figure.
"If there is a further major dislocation in international markets that has a flow-on effect on the cost of money, then I can't guarantee anything," he told Channel 9.
"It is fair to say that we are probably at the top of the interest rate cycle at this point."
However Mr Norris denied banks were ripping off customers over interest rates.
"Australia is a very competitive market and if you look at the pricing for mortgages, it has reduced significantly over the last 10 years," he said.
"In fact, the margin has reduced from over three per cent to under one per cent when you take into account all of the funding costs that the banks have."
Despite claims the banks believe rates will surge again next year Treasurer Wayne Swan has told 2GB Jason Morrison that is not his advice.
"My advice from the treasury and from the Reserve Bank is that when the Reserve Bank cuts the official cash rate, that is of great benefit to the bottom line of the banks.
"It extends right across their loan portfolios and they are in a position to pass that on."
