Media Release
Tuesday 2nd November 2010
Interest rate rise increases pressure on banks to consider community and not just profits
Moves by major banks to lift interest rates beyond the Reserve Bank rates movement will hit mortgage holders already
struggling with high rates, many of them bank workers.
The Reserve Bank today lifted the official cash rate by 25 basis points, and the decisions was quickly followed by
CBA's announcement of a 45 basis points increase to their variable rate.
The news comes amidst strong profit announcements from NAB and ANZ last week, and Westpac expecting solid
returns at Thursday's profit announcement. CBA's profit announced earlier this year rose 20% to $5.7 billion.
Finance Sector Union National Secretary, Leon Carter said “The banks are incredibly profitable thanks in part to their
decision to raise rates above official movements in interest rates. While the level of indebtedness is at high levels and
the profits of banks at record levels we need to see the big four banks in particular heed the calls of their customers to
be responsible.”
“Australians want better banking. And 82% think banks should not be permitted to raise rates above the RBA rate.”
The figure comes from this week's Essential Report which also recorded strong support for capping bank CEO salaries,
and tighter controls on sending personal data and Australian finance jobs offshore. The report backs up the results of
the FSU and Finsec's Better Banking survey earlier this year.
“As part of our campaign to promote Better Banking we have been calling on all members of the Commonwealth
Parliament to pass legislation that reforms the banking system to deliver a fairer and more transparent banking market
for both workers and consumers,” said Leon Carter.
“While restraint on the part of the banks in regard to interest rates would be a good start, workers and customers need to
see real action to deliver better banking. Action that limits rises in interest rates to official movements in rates.”
Essential Report: essentialmedia.com.au
Better Banking Survey: better-banking.org
Spokesperson: Leon Carter, 0409 946 597
Media: Anaya Latter, 0432 121 636
NEWS 
