Treasurer Warns Banks Against Bank Rises
SMH has reported Treasurer Wayne Swan has cautioned the Banks not to increase interest rates as the Government initiates it’s withdrawal of Deposit Guarantees. Along with this, the Wholesale Funding Guarantee program which helps banks borrow money from overseas will too be phased out. Mr Swan said that the cost of borrowing had gone back to levels pre the Global Financial Crises. He stated that it would be at the peril of the Banks to raise interest rates higher than the RBA, warning of swift consequences brought on by both the Australian public and the Government.
Simon Reibelt from Oasis Home Loans Northern Beaches saw this comment as quite strong. If Banks chose to move outside of RBA increases, as Westpac has already learnt, the greater community would voice its approval through loyalty and movements. Though for other funding sources, interest rate differences can open opportunities for customers with cheaper rates which would well be worth the shop around.