so, a little while ago the banks decided to raise their interest rates independently of the reserve bank of australia’s decision not to raise its rates at the time. they argued that there wasn’t a necessary link between their rates and the RBA’s.
now the RBA has lifted its rates, i guess we can expect the banks to not necessarily raise their automatically, right? yeah, right… i’m betting we’ll see rates rising within days, with the banks not needing too many excuses to add a little more to their staggering profit margins.
there have been many times in recent history where i have lamented deregulation in a number of key social enterprises, including the banks. i don’t think it’s been to the general betterment of australians to have so many major public institutions like banks operating unaccountably and with their only real goal being massive profit.
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yep – so now those who have not locked their rates feed the banks again – for zero additional benefit or service – how bizarre.
You know what makes me red with anger, these News shows saying how people have gotten themselves in debt, some of these poepl getting their loans 7 years ago, but the thing is that a 250k loan has gone up 300+ a months
thats crap because someone earning 50k a year thats almost a 3rd of their pay going extra to a loan, and they where probably paying 400/months before that. I just dont’ get why they keep going up, because our dollar is stronger? People keep on spending…we are spending all our damn money on interest rates, thats where we are spending our money.
/End Rant
well, the commonwealth bank jumped in, and not only raised their rates, but raised them above the .25 that the RBA had announced!
the banks cite the need to pass on costs, but they don’t seem to be in quite the hurry to pass on the massive profits they generate (except to their CEOs in unbelievable bonuses). it seems to me that costs seldom get passed onto shareholders or the key management team, but do seem to get passed onto customers, whereas the opposite occurs with profits… strange that… :-/