The nation’s largest banks are beginning to ratchet up loan discounting once again, driving them to punish savers to protect margins.
Already a subscriber?The nation’s largest banks are beginning to ratchet up discounts on home loans once again, threatening a fresh outbreak of the “mortgage wars” and driving them to punish savers to protect profit margins ahead of an expected interest rate cut.
“You can read a couple of ways – it could be a hedge against mortgage competition and rate cuts, or it could give them capacity to compete harder on mortgages,” Mr Cai said.
Treasurer Jim Chalmers said he had consistently argued that the benefits of higher interest rates should be passed on to savers.Labor MP Jerome Laxale threatened to refer the banks to the Australian Competition and Consumer Commission, which last year slammed the banks for“After posting record profits, the banks are having a laugh here,” Mr Laxale said. “When the cash rate rises, they jack up mortgage rates before the ink dries on the RBA’s decision.
Shadow treasurer Angus Taylor said that “savers and term deposit holders should be treated fairly”, and criticised the Albanese government for being slow to respond with policies thatChris Bayliss, chief executive of small business lender Judo, said the cuts to term deposit rates showed “how the big banks abuse” customers. While Judo only lends to businesses, it finances most of its lending with retail term deposits.
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