Now while i understand that the banks are a business and customers have choice (although that choice can come with some very tight and costly
conditions), a precedent now has been set where they are going to start adjusting their rates independent of the RBA.
Only hours after ANZ announced theirs, Westpac have followed through likewise - with a bigger raise. Now those increase might not amount to much, but
now that it has been done, greed will prevail unabated.
Lots of 'savers' like to argue that banks are a business and that's fair enough. But I wonder how these customers would feel if they start lowering
their interest rates on savings accounts? It's a business after all, right?
How about some increased fees all round, for all customers regardless? Not likely perhaps, but there's no stopping it now. The industry has decided
to bleed their customers to maintain their profits, regardless of who it screws over! There's already lots of angry customers. Seems mortgage owners
are the ones who are gonna be hardest hit, and businesses if they raise their variable rates as well.
This is gonna get ugly. And I'm all for watching it with a big bag of popcorn (though I don't eat popcorn). As job losses accelerate and our economy
deteriorates, the RBA becoming irrelevant, the government ineffective, the banks are likely gonna start hitting some people hard.
I just hope they exercise some restraint, but regardless, I just see this move as one of many that is not going to bode well, not only with bank
customers, but the Australian community more broadly as increasing numbers of people have less discretionary spending money, or otherwise, lower
confidence to spend due to increased uncertainty of the future.
I have a mortgage with CBA so will be watching. They already put their rates up two or three times over and above the RBA during those increases from
2009 to 2010, and yeah it hurt my pocket. Fortunately I have family to help.
How do others feel?
ANZ lifts variable interest rate by 0.06 per
cent after RBA keeps them on hold
* ANZ has raised interest rate by 6 basis points to 7.36pc
Westpac raises mortgage rates
* Rate rise will add $6.50 per fortnight to the average home loan
* CEO defends move saying they must delink from the RBA
WESTPAC Banking Corporation has become the second of the four big banks to raise interest rates in defiance of the Reserve Bank of Australia
Westpac announced today that it would raise its standard variable home loan rate by 0.10 percentage points to 7.46 per cent, effective from February