Before the RBA announced there rate cut I said that if the RBA cut interest rates I would expect all the banks to cut interest rates by at least the same as the RBA. Well NAB has proven me wrong.
I have had a mortgage since start of 2009 and there has been numerous occasions when the banks have not passed the interest rate cut in full or increased by more than the RBA. I estimate that the banks increases in interest rates over the RBA is at least 1%. Were the banks interest maragins so low before the GFC that they hardly made a profit, or are the banks profit gauging or a bit of both?
In the short term I can't see what borrowers can do to avoid the increase movement than the RBA execpt fixing there loans. I'm glad that our banks are healthy and for now I don't want any more government intervernce into this area for now. I do believe there is some truth that funding costs have increased since the GFC.
I maybe waiting for a while but I can't wait to see the banks starting to decrease varaible rates by more than the RBA or increase them less than the RBA.
I have had a mortgage since start of 2009 and there has been numerous occasions when the banks have not passed the interest rate cut in full or increased by more than the RBA. I estimate that the banks increases in interest rates over the RBA is at least 1%. Were the banks interest maragins so low before the GFC that they hardly made a profit, or are the banks profit gauging or a bit of both?
In the short term I can't see what borrowers can do to avoid the increase movement than the RBA execpt fixing there loans. I'm glad that our banks are healthy and for now I don't want any more government intervernce into this area for now. I do believe there is some truth that funding costs have increased since the GFC.
I maybe waiting for a while but I can't wait to see the banks starting to decrease varaible rates by more than the RBA or increase them less than the RBA.