Banks ignore Swan and increase interest rates on Melbourne Cup day
2nd November, 2010
The blame for the Melbourne Cup day bank interest rate rise rests with the Gillard Labor Government, Federal Member for Wide Bay, Warren Truss said today.Mr Truss said Federal Labor Treasurer Wayne Swan had been totally ineffective in stopping the banks from increasing their interest charges beyond the official Reserve Bank rises.
Labor has stood by helplessly as the banks repeatedly raise their margins in spite of the Reserve Bank minutes reporting that the cost of finance has plateaued for the banks themselves.
“In spite of 32 pathetic pleas by Wayne Swan to the banks not to lift interest rates, banks are not only increasing their rates, but they are lifting them well beyond the Reserve Bank rises,” Mr Truss said.
“This comes in spite of the banks receiving the benefit of the Government’s bungled bank deposit guarantee, which unfortunately led to the concentration of the mortgage market with the big four banks and many retirees unable to access their investments.
“Wayne Swan will go down as Australia’s most ineffective Treasurer in Australia’s history. He talked up inflation, blew the surplus, plunged the Budget into deficit and drove the nation into debt. No wonder the banks refuse to listen to him.
“We have all seen the record profits that the banks are reporting, and it is the home and businesses borrowers who are left to pay the price. Mr Swan trots out his well worn excuses, but in true Labor style he does nothing to ease the burden on households and businesses.
Mr Truss warned that unless Labor controls its own spending, more rate rises could be on the way.
“The overpriced school halls program, the disastrous home insulation scheme and the rorted green loans program have wasted taxpayers money and increased the Government’s own borrowing requirements.
“For as long as Labor’s reckless spending, waste and unrestrained borrowing continues, there will always be pressure on the Reserve Bank to increase interest rates,” Mr Truss said.
