Talking tough ... Federal Treasurer Scott Morrison says the major banks shouldn’t expect a ‘leave pass’ for their interest rate hikes. Picture: AAP
THE big banks shouldn’t expect a “leave pass” from the Government for hiking up interest rates while the official cash rate is on hold, Treasurer Scott Morrison said.
In a radio interview this morning, Mr Morrison called on the banks to “be upfront with people” and take responsibility for the commercial decisions they’ve made.
ANZ, National Australia Bank, Westpac and Commonwealth bank have all announced they would raise their variable home loan rates by between 15 and 20 basis points.
This is despite the Reserve Bank of Australia’s October 6 decision to keep the cash rate at two per cent.
The big four ... ANZ, NAB, Westpac and Commonwealth bank all announced they would raise their variable home loan rates by between 15 and 20 basis points. Picture: AAP/Joel CarrettSource:AAP
Mr Morrison said customers should hold their bank “to account”.
“The banks are strong and that’s a good thing for our economy,” he told 2GB radio.
“They make handsome profits, that’s all true, and they make a commercial decision to actually put up the price for their customers.
“Now what I’m saying is I’m not going to give them a leave pass to do that.
“They can’t blame the government for their commercial decision.
“That’s their decision and they have to justify it to their customers.”
Mr Morrison said the return on equity of Australia’s major banks was about 15 per cent — nearly double that of European financial institutions.
“I just think you’ve got to be upfront with people and I think banks have got to be upfront with people,” he said.
“And if they have chosen to increase their rates because they didn’t want to absorb a cost, well that’s what they’ve done.”
The Turnbull Government announced on Tuesday it would introduce laws preventing banks from charging customers more than they pay in credit card surcharge fees as part of it’s response to the Murray review.