ID :
16676
Fri, 08/22/2008 - 17:46
Auther :
Shortlink :
https://oananews.org//node/16676
The shortlink copeid
ANZ promises to pass on any RBA rate cut
(AAP) The ANZ has become the second of the Big Four banks to promise to pass on to customers any cut in official interest rates, as Treasurer Wayne Swan hinted at action to force its competitors to do the same.
Mr Swan has threatened to look at "all options" available to the government to forcethe banks' hand if they refuse to match any cut by the Reserve Bank of Australia.
The move by ANZ follows a similar pledge by the National Australia Bank (NAB) on Thursday, the first bank to buckle to continuing pressure from the federalgovernment.
But their rivals, Westpac and the Commonwealth Bank, still aren't promising to matchthe guarantee.
Financially stretched homebuyers are widely anticipating a cut in the Reserve Bankof Australia's official cash rate of 7.25 per cent when it meets on September 2.
ANZ chief Mike Smith said that based on current circumstances, following the centralbank was a pretty simple equation.
"It's unusual to be asked what we are going to do ahead of a rate cut but on what weknow today, this is a pretty simple equation," he said.
"If funding costs continue at the current levels and the Reserve Bank do actually cut rates, then there will be a full flow-on to our mortgage customers." Mr Swan told Fairfax Radio Network there was no excuse for banks not to match anycuts from the RBA.
"There is absolutely no excuse at all from any bank not to pass on any official ratecut," he said.
"They passed on the costs when they went up on in a nanosecond, and as they comedown there is no excuse whatsoever.
"And that's what my advisers from the Reserve Bank and the Treasury tell me - (there is) none, none at all."Mr Swan challenged the other big banks to follow the lead of NAB and ANZ.
And if they didn't, the government would look at what it could do to force their hand.
"If they don't do it then all options are on the table," he told ABC radio.
However he refused to elaborate on what those options were.
"I'm not going to put all the options on the table," Mr Swan said.
Family First senator Steve Fielding, who now shares the balance of power in the Senate, called on Mr Swan to consider a system where banks had to notify thegovernment of intended increases in rates.
He wants a system such as that used for private health insurance, in which theindustry has to clear proposed premium increases with the health minister.
"In recent times the banks have become a law unto themselves," Senator Fielding said.
Mr Swan has threatened to look at "all options" available to the government to forcethe banks' hand if they refuse to match any cut by the Reserve Bank of Australia.
The move by ANZ follows a similar pledge by the National Australia Bank (NAB) on Thursday, the first bank to buckle to continuing pressure from the federalgovernment.
But their rivals, Westpac and the Commonwealth Bank, still aren't promising to matchthe guarantee.
Financially stretched homebuyers are widely anticipating a cut in the Reserve Bankof Australia's official cash rate of 7.25 per cent when it meets on September 2.
ANZ chief Mike Smith said that based on current circumstances, following the centralbank was a pretty simple equation.
"It's unusual to be asked what we are going to do ahead of a rate cut but on what weknow today, this is a pretty simple equation," he said.
"If funding costs continue at the current levels and the Reserve Bank do actually cut rates, then there will be a full flow-on to our mortgage customers." Mr Swan told Fairfax Radio Network there was no excuse for banks not to match anycuts from the RBA.
"There is absolutely no excuse at all from any bank not to pass on any official ratecut," he said.
"They passed on the costs when they went up on in a nanosecond, and as they comedown there is no excuse whatsoever.
"And that's what my advisers from the Reserve Bank and the Treasury tell me - (there is) none, none at all."Mr Swan challenged the other big banks to follow the lead of NAB and ANZ.
And if they didn't, the government would look at what it could do to force their hand.
"If they don't do it then all options are on the table," he told ABC radio.
However he refused to elaborate on what those options were.
"I'm not going to put all the options on the table," Mr Swan said.
Family First senator Steve Fielding, who now shares the balance of power in the Senate, called on Mr Swan to consider a system where banks had to notify thegovernment of intended increases in rates.
He wants a system such as that used for private health insurance, in which theindustry has to clear proposed premium increases with the health minister.
"In recent times the banks have become a law unto themselves," Senator Fielding said.
