The Reserve Bank Governor says banks should have more room to move on interest rates

All major banks have started dropping rates, following yesterday's widely-expected double cut to the OCR.

At least two more single cuts are expected, in April and May.

Adrian Orr says banks are making big profits, and can be competing much more vigorously for customers.

He says the OCR is only one of the variables that go into what banks have to pay when they on-lend, but their profits are at very healthy levels.