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Thought it was likely by this morning that we would have heard what the four banks plan to do in respect to lowering interest rates now that the cash rate has come down. Abbott spoke to the media and stated that he felt that Wayne Swan was not doing enough to make them do this and so on.

I suppose I have two comments, one is that I am not sure what Swan can actually do outside of renationalising the Commonwealth bank? Secondly they have made it easier for people to switch loans from one bank to another, if the Governmnet are really so worried about the general people affected, why not simply undertake free advertising for groups like the Bank of Queensland and so on that have lowered ther rates? - Advising people that they can simply switch to someone else with less red tape than what there used to be. Banks might well lower their rates if they start losing customers to their competitors?

Adjusting bank rates to match official reserve shifts has never been automatic, and it is only posturing politicians who say it should be.
(It is a bit like them suggesting doctors should bulk bill, despite the Medicare rebate being 40% behind inflation.)
Business decisions get made for business reasons..

Unless they decide to nationalise one or more banks there is not much they can do to interfere with the banks business decisions.
Even when they did own the Commonwealth Bank it didn't make a lot of difference, and the ALP tried nationalisation once many years ago.
http://en.wikipedia.org/wiki/Commonweal ... outh_Wales

However, people should check around and get the best deal they can.
You should do the due diligence, on any business deal yourself, and not expect it to be done for you.
And buying a house is a business deal.

I'm sure the banks costs of fund raising is an issue.

On the other hand, they're making record profits, so selective arguments won't wash.

After they were effectively guaranteed by the Government during the GFC (socialisation?), they owe us the full cut.

redandblack wrote:I'm sure the banks costs of fund raising is an issue.

On the other hand, they're making record profits, so selective arguments won't wash.

After they were effectively guaranteed by the Government during the GFC (socialisation?), they owe us the full cut.

couldnt agree more

The "exit fee" abolishment is a crock of shit anyhow.

Sure no exit fees, but they just sting you on the other end with "establishment" fees.

I guess it was bound to happen sooner or later - I find myself largley agreeing with the Greens!!!

If the Banks want to suck on the tit of Government Welfare then maybe they should have an obligation to pass on rate cuts as directed to by the Treasurer? Maybe its not unreasonable that it be directly related?

http://news.ninemsn.com.au/national/838 ... tell-banks

ANZ has passed on the cut in full

redandblack wrote:I'm sure the banks costs of fund raising is an issue.
On the other hand, they're making record profits, so selective arguments won't wash.
After they were effectively guaranteed by the Government during the GFC (socialisation?), they owe us the full cut.

That action was to reassure the public and stop panic, not necessarily for the banks benefit, nor, necessarily, a necessity.
(Forgive the choice of words, "a foolish figure", but I enjoyed it. )

While I found it personally reassuring, there is no evidence the Australian banks needed guaranteeing, or, therefore, owe anything for it..
So, I'm sceptical that it is a valid point to make above..

That said, I approve of the banks handing it on if it is practical, even if it may marginally affect my dividends.

Did I really say 'socialisation'

Try socialism.

NAB have passed it on also!

Commonwealth bank announced it will pass on in full

*cough* credit card rates *cough*

Heard a fella on radio from WESTPAC state that this would be the last cut they could afford and next year they wouldnt be able to pass on anymore cuts

Jim05 wrote:Heard a fella on radio from WESTPAC state that this would be the last cut they could afford and next year they wouldnt be able to pass on anymore cuts

Problem is Bank of Queensland are passing on the Cuts as are several others, One thing that I do have to commend Treasurer Swan for is making it much easier to simply switch banks. Westpac can retain their high rates, yet nothing stops people from simply moving else where!

Westpac's cost of funds is increasing - correct.

Westpac therefore say they can't afford to pass on the rate cuts - correct.

Westpac are making record profits - correct.

Westpac's credit card interest rates rarely drop with a rate cut - ?????????????

Selective arguments.

redandblack wrote:Westpac's cost of funds is increasing - correct.

Westpac therefore say they can't afford to pass on the rate cuts - correct.

Westpac are making record profits - correct.

Westpac's credit card interest rates rarely drop with a rate cut - ?????????????

Selective arguments.

Correct

Various commentators are suggesting that a .25% or even a .50% cut may be on the way next Tuesday - or perhaps even two .25% cuts with the second at month or more away. Westpac already seem to be suggesting that they may not pass on the cut - Dejavu?

the RBA Cut rates, but the banks dont pass on the full cut. the RBA keep rates on hold so the banks slightly increase the rates