Poker faced bankers keep consumers guessing
(9 November 2010 – Australia) Eight days on from the Reserve Bank’s Cup Day rate rise and the Commonwealth Bank has been left hanging, as its big four rivals delay their announcements.
Canstar Cannex analyst Mitchell Watson told the Sydney Morning Herald newspaper that the delay by the other banks to make an announcement, after the Commonwealth Bank declared it would be raising rates by 0.45 percent, fell well outside of the normal window of only a few hours normally adhered to by banks.
''We tend to hear within the first 48 hours what banks will be doing about interest rates,'' Mr Watson said.
In the aftermath of the Commonwealth Bank’s announcement speculation mounted that other bank executives were taken aback by the political backlash, including calls for tougher regulation for banks.
Bank executives maintain the stance that costs involved with sourcing funding on the international markets had risen significantly in the wake of the global financial crisis.
The increase fuelled a political bidding war about the need for tougher regulation for banks after the big four recorded $21.4 billion in profits.
The Gillard government has now vowed to tackle exit fees, which bind homeowners to their current mortgage and hinders competition.
Justin Hanka, from the home-loan comparison website Helpmechoose.com.au, said the number of registrations on its site since the Reserve Bank move had more than quadrupled to 2000 above the previous week.
''I think the Commonwealth Bank decision was a real instigator for the increased interest in comparison sites like ours,'' Mr Hanka said.
Mr Hanka highlighted that the biggest increase in interest was focused on ''refinance an existing home'' and ''lowest possible rate''.
''We tend to hear within the first 48 hours what banks will be doing about interest rates,'' Mr Watson said.
In the aftermath of the Commonwealth Bank’s announcement speculation mounted that other bank executives were taken aback by the political backlash, including calls for tougher regulation for banks.
Bank executives maintain the stance that costs involved with sourcing funding on the international markets had risen significantly in the wake of the global financial crisis.
The increase fuelled a political bidding war about the need for tougher regulation for banks after the big four recorded $21.4 billion in profits.
The Gillard government has now vowed to tackle exit fees, which bind homeowners to their current mortgage and hinders competition.
Justin Hanka, from the home-loan comparison website Helpmechoose.com.au, said the number of registrations on its site since the Reserve Bank move had more than quadrupled to 2000 above the previous week.
''I think the Commonwealth Bank decision was a real instigator for the increased interest in comparison sites like ours,'' Mr Hanka said.
Mr Hanka highlighted that the biggest increase in interest was focused on ''refinance an existing home'' and ''lowest possible rate''.
Subscribe