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Australian treasurer Wayne Swan has warned the country's major banks that they risk alienating their customers if they hike interest rates.
The Reserve Bank of Australia (RBA) surprised many economists earlier this week when it opted not to lower the base rate to four per cent and now there are fears that some of the main lenders will see this as an opportunity to increase their own rates.
Experts have predicted that ANZ, Commonwealth Bank, Westpac and NAB may all make a readjustment before the RBA board members meet again in March.
Mr Swan has urged Aussies not to be bullied by the big four and has insisted that savings can be made by comparing bank accounts and other packages.
"The reforms we've put in place make it easier for families to ditch their bank if it doesn't do the right thing by them," he commented.
Last week, the Australian Associated Press conducted a survey, which found that 13 out of 14 economists believed the RBA would cut interest rates by 0.25 per cent in February.
The Reserve Bank of Australia (RBA) has surprised analysts by maintaining the base rate at 4.25 per cent.
Read more...Cyber security specialists have been drafted in by the Reserve Bank of Australia (RBA) as it vies to limit its exposure to online criminals and activists.
Read more...More economists have joined the clarion call of financial experts that are predicting an imminent rate cut at the Reserve Bank of Australia.
Read more...The majority of economists firmly believe that the Reserve Bank of Australia (RBA) will slash interest rates again this month.
A survey conducted by the Australian Associated Press indicated that 13 out of 14 economists are predicting the RBA to reduce rates by a further 0.25 per cent.
The Reserve Bank had already reduced rates to 4.25 per cent in November and December, but this has had limited impact on home loans and other markets thus far.
Even if rates are trimmed, it does not necessarily mean that Australia's major banks will pass the reduction on to their customers.
Chief economist at AMP Capital Shane Oliver told the news provider that there is a strong case to cut the cash rate.
"The jobs market is weakening, retail sales and housing construction are weak, house prices are falling and consumer and business confidence are sub-par," he said.
HSBC chief economist Paul Bloxham recently told the Herald Sun that the ongoing mining boom has stood the country's economy in relatively good stead.
The Australian economy is in a strong position and further cuts to interest rates will help to significantly boost the retail and housing sectors.
This is the view of HSBC chief economist Paul Bloxham, who told the Herald Sun that rate cuts, as well as the ongoing mining boom, have stood the country in good stead.
He feels that the Reserve Bank of Australia (RBA) will make further readjustments to interest rates next week and even if these are not passed on to the Aussie on the street by the major banks, the RBA will keep the cash rate on hold at 3.75 per cent.
HSBC also tipped manufacturing to make a recovery in 2012, although it also forecast unemployment to grow towards the end of the year.
"The problems in Europe haven't been fixed … but the RBA has the firepower to use monetary policy to support the weaker parts of the economy," Mr Bloxham told the news provider.
Yesterday (February 1st), the Courier-Mail reported that Commsec analysts had predicted that the RBA would be influenced by low grocery prices offered by the likes of Woolworths when recalculating inflation rates.
An ongoing grocery price war between Woolworths and Coles could influence some of the decisions made by the Reserve Bank of Australia (RBA), it has been claimed.
Read more...Although many economists are predicting cuts to interest rates next month, credit card holders have been warned that the changes are unlikely to benefit them.
According to chief executive at the Australian Bankers' Association Steven Munchenberg, there are far more risks associated with credit cards than there are with other bank products such as home loans, National Features reports.
He suggested that banks were more relaxed about lending before the global financial crisis took hold in 2008 and since then they have been forced to "reprice risk".
"Credit card lending is high-risk lending, particularly compared with mortgages," he was quoted as saying.
Commsec economist Savanth Sebastian added that banks are unlikely to pass on interest rate cuts made by the Reserve Bank of Australia (RBA) in their entirety.
"The cost of lending money out at the moment for the banks is expensive," he remarked.
Last week, opposition treasury spokesperson Joe Hockley told Melbourne Talkback Radio that the RBA needs to make interest rate cuts in order to stimulate economic growth.
The Reserve Bank of Australia (RBA) needs to do "most of the heavy lifting" if the country's economy is to flourish.
Read more...The Reserve Bank of Australia (RBA) is coming under mounting pressure to make further cuts to interest rates.
Read more...Aussies have been urged not to leave it until the last minute if they want to make payments from their bank accounts this Christmas.
Each year the Reserve Bank of Australia (RBA) sets out the days in which institutions across the country should process transactions.
As well as weekends, banking staff are also given time off on public holidays and some have warned that those hoping to make a payment from their account will have to do so before 18:00 (AEDT) on Friday (December 23rd) if they want the money to be transferred immediately.
Those who miss this deadline have been told that the transaction may not be handled by the banks until December 29th.
The same "bank black out" scenario will also happen over the new year period, as January 2nd has been outlined as a public holiday too.
Earlier this month, the RBA sanctioned a cut to interest rates, which followed on from an identical readjustment in November.
More than one in three Aussies believe the Reserve Bank of Australia (RBA) will cut interest rates again this month.
Read more...The Reserve Bank of Australia (RBA) needs to introduce more interest rate cuts in the coming months in order to stimulate the country's property market, it has been claimed.
Read more...The Reserve Bank of Australia's growth predictions are a little optimistic, according to one leading analyst.
Read more...Australian consumers are most likely to use the recent Reserve Bank of Australia (RBA) rate cut to bolster their debt repayment plans, rather than investing the extra cash in savings accounts.
Read more...The Reserve Bank of Australia (RBA) is unlikely to announce another reduction to the cash rate when it meets next month, an expert has asserted.
Read more...The Reserve Bank of Australia (RBA) has announced the first interest rate cut of 2011, which will come into effect tomorrow (November 2nd).
Read more...An official from the Reserve Bank of Australia has said it is vital that regulators are given the power and resources needed to enable them to respond to threats to financial stability.
Read more...The next decision by the Reserve Bank of Australia (RBA) regarding interest rates is likely to be based on inflation data, it has been claimed.
Read more...With many pundits suggesting that the Reserve Bank of Australia (RBA) is likely to cut interest rates in the coming months, property is likely to prove an even more attractive investment option, it has been suggested.
Read more...The Reserve Bank of Australia (RBA) has revealed that is has not ruled out the possibility of a reduction in the cash rate at the next meeting of the board.
Read more...Australia's cash rate provides the Reserve Bank of Australia (RBA) with room to make further cuts in order to stimulate the economy, a position many other central banks are not in.
Read more...Shadow treasurer Joe Hockey has called on the Reserve Bank of Australia to reduce the cash rate from its current 4.75 per cent level.
Read more...The latest jobs data published by the Australian Bureau of Statistics (ABS) mean it is unlikely that the Reserve Bank of Australia (RBA) will change the cash rate at the next meeting of the board.
Read more...With figures showing a decline in the number of jobs available in Australia, the likelihood that there will be a reduction in interest rates has increased, it has been claimed.
Read more...The latest retail data from the Australian Bureau of Statistics has revealed that in August there was a 0.6 per cent increase in turnover in the sector compared with the month before.
Read more...The Reserve Bank of Australia (RBA) has announced that the cash rate will remain at 4.75 per cent for the 12th consecutive month.
Read more...The Reserve Bank of Australia (RBA) has been urged to reduce the cash rate by Westpac's chief economist Bill Evans.
Read more...The minutes from the latest Reserve Bank of Australia (RBA) monetary policy meeting suggest that the board has adopted a cautious approach to changing the rates.
Read more...Experts at two major banks have unveiled different forecasts regarding future changes to the cash rate by the Reserve Bank of Australia (RBA).
Read more...
All the latest news on the Reserve Bank and interest rates in Australia. For regular updates on Reserve Bank interest rates
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