Big Banks cease Interest rate Cut

Consumers have been forced to break with the Big Four Banks, in which the Four Banks remained in silence for having possibility on pre-Christmas Interest Rate Cut. The Reserve Bank’s decision to cut interest rates by .25% before Christmas has vanished because of the Four Banks who refused to pass on cuts to customers. Among the Four Banks, only ANZ announced it will pass on the full rate cut to customers.

RBA Treasurer Wayne Swan called on the Big Four Banks to cut their rates in line with the RBA: “For this rate cut to have the desired effect, the big banks need to come to the party. Failing to pass on this rate cut would be economically irresponsible.” He added, “They are among the most profitable banks in the world, I think that is understood very clearly by their customers and if their customers are unhappy with the behavior of their bank they can go down the road and get a better deal.” A decision not to pass on 25% cut to the official cash rate will cost homeowners with an average $300,000 mortgage and most people still face hefty penalties for walking away. Smaller bank and credit unions have passed the savings on to customers but why the Big Four Banks stand-off the Interest Cut rate? Are they really wary of global Instability?