Big 4 banks’ Cup Day interest rate rise was faster than ever
The fastest thing on four legs on Cup Day was in fact the major banks, with their fastest-ever reaction to the RBA rate rise.
After last month’s RBA rate rise, I wrote here about the Underhanded, not even-handed way that the major banks passed on the increase faster than they passed on previous rate cuts. Across all their home loans, that little trick saw them pocket something like $17 million extra in October. Our story was also picked up by the Daily Telegraph.
Well clearly the banks read it as well. But instead of embarrassing them into being fairer to their customers, it seems all I managed to do was encourage them to screw you even harder. The Big 4 managed to pass on the November RBA rate rise even faster than the last one! When the RBA cut rates by 1% in February, it took the major banks an average of 8 days to pass on the cut and in April it took 10 days. Last month they passed on the RBA rate rise in just over 5 days, and this time around they’ve taken only 3.5 days. It is staggering to think that, had they passed on the 1% cut in February as fast as they acted this month, borrowers could have saved as much as $80 million. That is simply taking advantage of their market position, and taking you for a ride.
And that’s what I call Shocking!
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