Fears Mount That The Big Banks Will Ignore The RBA

The ANZ Bank announced recently that they would now be setting their own schedules for rate reviews up to 10 days after the Reserve Bank has set the cash rate each month.

Consumer groups feel that the plan is a way for the ANZ to conceal them from the pressure imposed by the Reserve Bank rate cuts, amid speculation of decreased interest rates next year.

Neither Westpac, NAB nor Commonwealth have as yet indicated that they intend to follow this move by the ANZ, but this move has paved the way for staggered rate announcements.

The ANZ, Commonwealth, NAB & Westpace are between them making $44,000 a minute in profit.

Phillip Chronican ANZ's chief stated that the ANZ bank would decide their rates on the second Friday of each month.

The Governor of the Reserve Bank stated that there were discrepancies between home loan rates and the RBA's cash rate, and that the Reserve Bank had to lower the cash rate by more than it wanted to, to offset the bank's resistance.

The Major Banks all took an extra two days before they passed on the rate cate to their variable home loan customers, due mainly to pressure from the public and Treasurer Wayne Swan.

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Published on December 12-th, 2011 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
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