Borrowers getting 'crumbs' from rate cuts: Symond

by Adam Smith23 Apr 2012

Aussie chairman John Symond has called on the RBA to make steep rate cuts, saying it would be "a farce" should consumers not see a 25bp reduction.

Speaking to the Australian Financial Review, Symond said the Reserve would need to cut the cash rate by more than 25bps in order to ensure consumers saw a significant rate reduction.

"It would be shocking for the RBA to drop 25bps and for the punters to receive crumbs from that. It would be a farce, which is why I think the pressure is now on the RBA to significantly drop rates," he said.

Symond claimed that banks were honest in their assessment that funding costs had risen, meaning that the RBA would have to make more severe cuts to see benefits filter through to consumers.

Symond also took time to lambast Treasurer Wayne Swan. He took aim at Swan's attempts to boost lending competition, criticising the exit fee ban for disadvantaging smaller lenders.

"At the moment, there is no competition. Wayne Swan, regardless of what he has said, he hasn't helped competition with the small lenders. In fact, he has made it tougher," Symond told the AFR.

COMMENTS

  • by Gazza 23/04/2012 10:44:43 AM

    Please...don't make yourself look silly. Official cash rate has far wider implications than just mortgage rates.

  • by Tom 23/04/2012 11:00:32 PM

    Hear Hear Mr Symond.