Interest rates are continuing to dominate the financial landscape in Australia, as pressure heaps on the major banks to pass on the December rate cut made by the Federal Bank.
Major banks have pocketed $24 billion in a record-breaking year. ANZ, Commonwealth Bank, NAB and Westpac have all failed to respond to the interest rate cut so far, and are predicted to be saving $7.4 million each day they retain the full benefit.
Treasurer Wayne Swan has warned banks that they will face customers’ wrath and loyalty if they keep displaying their greed. Swan has himself come under pressure to make an impact, however, with several politicians suggesting that banks frequently ignore his warnings. "Mr Swan can huff and puff all he likes, but no one takes him seriously", said opposition treasury spokesman Joe Hockey.
It is predicted that the average homeowner would save $49 per month, were the 0.25% to be passed on in full, which would prove a useful boost to a slowing economy ahead of Christmas.
The former Reserve Bank board member Solomon Lew highlighted how important this development was for economic stimulation and growth as a whole.
"The retail industry is not only our largest employer, providing 1.2 million Australians with jobs, but it is also the engine for driving economic activity across the nation.
"Cuts are needed to benefit not only the consumer but also the broader economy."
Will consumer pressure force the banks to concede ahead of Christmas? With interest rates in a state of flux, it is worth checking Which4U regularly to see how our listed credit card rates, savings rates, and home loan rates are to be affected by the second consecutive interest rate cut.
Ashley King
