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Should banks drop their rates?

Do you agree with Wayne Swan’s claim that banks should be passing on the full benefits of recent interest rate cuts?

The Treasurer has accused lending institutions of depriving customers of relief from the economic crisis. He reckons that matching the RBA’s rate reductions would help pull Australia out of recession. Would deeper cuts really be that effective?

Leading banks are making $450 a year more now on each average mortgage than two years ago, before the start of the global financial crisis, according to figures from The Australian.

Are banks being stingy or sensible in stubbornly sticking to higher rates?

And where do your loyalties lie in this debate if you work for a bank? Do you want your employer to make as much money as it can? Or are you more worried about your own mortgage? Let us know below.

Comments (5)

  1. The banks are having their cake (exit of non-bank lenders unable to survive the crisis gives them more market share) and eating it too (not cutting their rates)

  2. They should have done so already, without government pressure.

  3. Homeowners should stop complaining. They ain’t doing too badly..

    Luci Ellis, the head of the Reserve Bank of Australia’s Financial Stability Department, said that “relatively few households in Australia face going into negative equity, even if housing prices do fall somewhat”.

  4. Yes, and FHOG is helping first-timers too, plus rates are still quite low. The situation isn’t dire for most people

  5. The govt stance is more about scoring political points – interest rates are a political football

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