Quote:BANKS DON’T RATE SAVERS
CLARE ARMSTRONG - NATIONAL POLITICAL EDITOR
BANKS have been put on notice to pay up interest rates on savings
deposits, as high inflation sparks a rise in unemployment and home sales
slump.
The nation’s jobless rate climbed slightly to 3.7 per cent in the past
month, according to new figures from the Australian Bureau of Statistics,
with the situation expected to worsen as inflation fuels a cost-of-living
crisis.
Treasurer Jim Chalmers said the rise in unemployment was still expected
to continue up to the “middle fours” as the economy slowed.
“I’m certainly concerned that we’ll have inflation in our economy which is
higher than we’d liked for longer than we’d like and even as the
unemployment rate most likely ticks up a bit more,” he said.
New figures from Housing Industry Association (HIA) showed a 46.7 per
cent decline in new home sales in January compared to a year ago as rate
rises also cool demand for properties.
As NAB and Commonwealth Bank posted huge profits, Mr Chalmers again
urged all banks to “pass on the interest rate rises to savers as quickly as
you pass on the interest rate rises to mortgage holders”.
“I understand that people are furious, when mortgage rates go up more or
less immediately, and savings rates go up much slower or not at all,” he
said.
“This is the reason why I’ve asked the ACCC to do some work in this space.”
Mr Chalmers also hit back at reports he did not speak to RBA Governor
Philip Lowe on rates, arguing the pair talked “frequently” about the
economy.
“We do talk about the pressures on the economy, the steps that the government is taking and the steps that the Reserve Bank is taking,” he
said.
Mr Chalmers said as with past treasurers there was “no pressure” from
him on what interest rates should or shouldn’t do out of “respect” for the independence of the RBA.
Opposition Treasury spokesman Angus Taylor said the latest jobs data was an “ominous” early sign of a “dangerous combination” of high inflation
beside job losses.
“Higher cost of living, job losses,” he said.
“These are the outcomes that are the worst-case scenario for Australians under the current circumstances and we need a government with a
coherent plan that can deal with those issues.”
Australian Banking Association chief executive Anna Bligh said banks “stand ready” to assist the ACCC in an “open and transparent manner”.
“The purpose of the ACCC inquiry is to determine how savers are benefiting from a higher interest rate environment and I expect that the
final report … will provide clearer answers on how banks are dealing with this issue,” she said.
This week NAB announced a 18.7 per cent jump in cash earnings to $2.15bn in the last three months to December 31.
Commonwealth Bank announced a cash net profit after tax of $5.15bn for
the last six months of 2022.
On Thursday ANZ announced it expected the RBA would continue to raise rates two more months in a row up to 4.1 per cent in May this year.
The bank does not expect any easing in the cash rate until November 2024.
The way interest rates on mortgages are increased straight away ...... but the increase in interest on savings is delayed or not passed on at all .....
is exactly the same as Fuel companies jacking up the price at the bowser immediately there is a rise in the price of a barrel of oil....
then takes weeks to lower prices at the bowser or not at all when there is a drop in the price of oil.
No wonder people suffer from financial anemia when there are so many business parasites in the economy.
Nothing new. It’s been going on since ummm forever.
Banks don’t make money out of people. They make their REAL money out of sheeple.
Fuel is a completely different issue. You don’t need to borrow money for that. You pay at point of sale. However you’re quite right about the delay in passing on/lowering the cost of fuel per litre though. That’s how the fuel industry makes their money. Shareholders in the fuel industry include well known Super fund brands.
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