Hockey misleading on rates: banks ( admin posted on January 15th, 2019 )

Opposition treasury spokesman Joe Hockey’s assessment of the impact of central bank interest rates on banks’ cost of funding is misleading, the Australian Bankers’ Association (ABA) says.

上海性息

Mr Hockey is demanding Treasurer Wayne Swan use all this powers to prevent banks hiking interest rates over and above Reserve Bank adjustments.

He said this morning the banks have successfully intimidated the government into weakness.

“They’ve conned the government into believing that the costs of raising money are continuing to grow,” he told ABC Radio.

Mr Hockey said he has given the treasurer 24 hours to use a range of levers to pressure the banks to limit rate increases, suggesting the Coalition might be able to garner sufficient crossbench support in the parliament to take action against the banks if Mr Swan did not act.

ABA chief executive Steven Munchenberg said rate moves by the Reserve Bank were just one factor banks took into account when setting interest rates for their customers, including higher offshore funding costs and higher costs of deposits.

”We are still raising funds internationally … and banks are paying a lot more for deposits than they were prior to the financial crisis,” he said today.

He said the idea that the RBA’s overnight cash rate was the only factor banks had to account for in setting interest rates for borrowers was wrong.

”Our main concern is that when politicians go out and say there’s no justification for moving beyond RBA, they are reinforcing this perception that the RBA somehow sets interest rates,” Mr Munchenberg said.

”Mr Hockey’s comments that under the former government banks didn’t dare move outside of the RBA goes to reinforcing those messages.

”Our response is that the former government didn’t have to deal with a global financial crisis either.”

Meanwhile, a federal Liberal MP has mistakenly rubbished opposition treasury spokesman Joe Hockey, describing as “lunatic fringe-type” the idea of parliament regulating how banks increase their interest rates.

Mr Hockey is demanding Treasurer Wayne Swan use all the levers of his position to prevent the banks hiking interest rates over and above Reserve Bank adjustments.

He suggested the coalition might be able to garner sufficient crossbench support in the parliament to take action against the banks if Mr Swan did not act.

Liberal parliamentary secretary Don Randall lampooned the idea as one typical of the Australian Greens.

“This is just another one of their … lunatic fringe-type ideas,” he told reporters in Canberra.

Mr Swan jumped on the remarks saying not even his own party was prepared to support Mr Hockey’s “latest piece of ill-considered rubbish”.

“This is an absurd intervention from Mr Hockey,” he told AAP.

Mr Hockey said the banks had successfully intimidated the government into weakness.

“They’ve conned the government into believing that the costs of raising money are continuing to grow,” he told ABC Radio.

Yet the minutes of the October meeting of the Reserve Bank board, released this week, showed costs had “flatlined” during the past few months.

The major banks have flagged possible increases in variable home loan rates beyond central bank hikes in the cash rate. Mr Hockey’s frontbench colleague Malcolm Turnbull was reluctant to say how parliament could intervene.

“Parliament has got plenty of legislative scope … but I’m not aware of any precedent for parliament regulating interest rates,” he said.

COMMENTS: Comments Closed

Categories: 上海性息

top