rates up again. http://www.smh.com.au/business/anz-breaks-ranks-to-lift-interest-rates-20120413-1wyl5.html
To me, this means one of two things (or a bit of both): 1. The banks know what is coming and are bracing themselves to ride it out 2. The banks are greedy and only care about profits
Probably won't be too long before the other banks start ignoring the reserve and raising she ever they want to. They're all scumbags.
I'd hazard a guess and say both reasons. They know what's coming but why not squeeze every last ounce they can before SHTF? :|
They're doing it because of the rise in wholesale funding costs. They're currently lending at a loss just to keep the credit from drying up with all the knock on effects to prices that that would entail. They know what will happen if they stop lending or raise rates to match offshore funding costs.
Why don't they just borrow from the Fed? Zero interest rates in place and a printing press primed to go go go :lol:
The RBA is a waste of time and money (especially the near million dollar pay packets of the bureaucrats on the board). RBA rates will start falling pretty soon I suspect. With government spending less money to get back to a surplus and a shedload of people becoming unemployed in recent months (with more to come) the dodgy CPI figures will start falling pretty soon. At the same time bank interest rates will either stay steady or keep going up. The RBA is a waste of space and their interest rate movements mean bugger all to home loan rates for the banks. The big 4 is insolvent and they know it, trying to take steps to delay actually showing that with whats to come........ Bring on a bank run!
Not likely to happen nowadays. banks have legislative protection, they have merged limiting competition meaning they are now too big to fail, and all they have to do is implement a "technical" glitch into their computer systems and it won't matter how long the queue is outside the doors - you won't get your money. Unfortunately, the bank run is a thing of the past. Big AD?
Um. Excuse me? What is unbelievable about what I've said? The debt they use to funnel in to the housing market is getting expensive, hence the out of cycle rate rises and sales focus on savings products. They ARE currently lending at a loss. They're showing massive profits by using ridiculous accounting tricks. So, what's the pope mobile like, I mean.. Looks pretty comfy
