Banks told not to raise rates
By Tim Neary
|
09 Feb 2010
Treasurer Wayne Swan has intensified the pressure on the major banks to limit any increase in lending rates following moves to unwind the government's guarantee for wholesale funding.
In a pre-emptive shot at lenders, Swan told parliament the removal of the guarantee would not materially affect bank funding costs so there was "absolutely no justification" for them to raise rates at a faster pace than the RBA, according to a report in The Australian Financial Review.
While some have criticized the removal of the guarantee, Swan was unapologetic.
Rather, he said it attested to the strength of both the financial system and the overall economy.
Related Story
Govt withdraws bank guarantee - The Rudd government is withdrawing the guarantee scheme for large deposits and wholesale funding on the 31 March.
Broker news forum is the place for positive industry interaction
and welcomes your professional and informed opinion.
Win a media advertising package worth over $10,000!
Have something interesting to say? The best comment of the month as judged by the
Key Media editorial team will receive a personal profile on Broker news and
in Australian Broker magazine as well as the opportunity to advertise their
business in the nationally circulated Your Mortgage magazine! To enter the competition, you must login with your Broker news username and password. If you are not already a member, sign up now!
Post a comment
Broker news welcomes your contribution. Your IP address is recorded in the event
of a complaint.