''I used to think that you could get competition with four good competitors, but they're not sort of demonstrating that belief of mine, really. I live in hope that one will take a lead one way and do something a bit more dramatic and that will spark a bit more real competition.''
Van Onselen, however, says that despite many predictions of a rate cut following tomorrow’s RBA meeting, he believes the cash rate will stay the same – as will major banks’ behaviour.
“If banks came out tomorrow and cut interest rates by 25 basis points, the RBA would probably just adjust the rate upward again in the next few months. People say the banks are screwing borrowers – not necessarily. The RBA has room to move the cash rate if they want to.”