MEDIA RELEASE
14 October 2009
Big Four Banks Profit on Rate Increase
-
Windfall $17 Million profit – underhanded, not evenhanded
The Big Four Banks have made a swift $17 Million dollar profit by passing on last week’s rate rises
faster than rate cuts according to research by financial comparison website Mozo.com.au.
After the RBA raised official rates on October 3, the Big Four Banks all passed on the 0.25%
increase to home loan customers within five or six days. But when the RBA cut rates in February
and April this year, it took nine days on average for the Big Four to pass on the cut. And NAB didn't
pass on the last cut at all!
Rohan Gamble, managing director of Mozo said: “The banks want everyone to believe they have
done the right thing by the Australian homeowner by only passing on the official 0.25% interest rate
rise. But the fact that they moved much quicker on this rate rise than recent rate cuts shows the days
of greedy bank profiteering are far from being over.
“What’s really interesting that the Big Four continue to moan about the high cost of funding. It makes
us wonder just how long it will be before they break rank and push up their interest rates beyond the
official RBA increase.”
Mr Gamble added: “Most homeowners feel they are at the mercy of the Big Four Banks but there are
a number of very competitive home loan providers and home loan products in the marketplace.
Comparison sites like Mozo continually track rates movements of the banks.”
-
ends –
Big Four raise rates faster than they cut them
Bank
Days to
pass on
February
rate cut
Days to
pass on
April rate
cut
Days to pass on October
rate rise
ANZ
9
9
5
Commonwealth
9
9
6
NAB
9
no change
5
Westpac
5
12
5
Around 9 days to pass
on rate cuts, on average.
Rate rise passed on
within 6 days.
Source: mozo.com.au
For more information, or to arrange an interview with Rohan Gamble, please contact:
Kirsty Lamont, Mozo Communications Director
P (02) 9037 4372 M 0400 411 148 , E kirsty.lamont@mozo.com.au
About Mozo.com.au
Mozo is an online comparison service that launched in October 2008 to help Australians navigate the
money maze. Mozo lets consumers easily compare the interest rates, fees and features of hundreds
of different credit cards, loans and savings products. Mozo is independently owned and our product
data is 100 per cent objective.
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