Banks off RBA leash, say brokers

by Mackenzie McCarty04 May 2012

A new survey claims that mortgage brokers believe major banks have now sidelined the RBA as a setter of mortgage rates in Australia.

1300HomeLoan's first Market Insights survey of its broker network found that 31% of brokers believed banks had distanced themselves from the RBA's monthly rate decision.

A further 53% believed that if the banks refused to pass on the rate cut in full, which CBA and NAB subsequently failed to do, this would be proof the banks were now off the leash.

“People are already confused  about who is driving interest rates and this shift is making it worse,” managing director John Kolenda said.

“The old days when the RBA would announce a change in the official cash rate and the major banks would follow regardless of their business pressures are well and truly behind us,” he added.