Kochie unleashes on the big banks over their ‘piddly’ offer to savers while they rake in an extra $600million a MONTH by hiking mortgage rates
- Sunrise host called out Australia’s big four banks amid rising interest rates
- He said they were passing on ‘piddly’ interest rate rises to customers saving
- Treasure Jim Chalmers agreed and said he was ‘disappointed’ in the banks
- Reserve Bank of Australia is expected to hike up interest rates again on Tuesday
David Koch has called out Australia’s big four banks over the ‘piddly’ amount they are passing onto savers despite ‘whacking up interest rates’ on borrowers.
The Reserve Bank of Australia is expected to hike up interest rates again on Tuesday to 1.85 per cent; the fourth rate hike since May.
While Westpac, CBA, NAB, and ANZ have been quick to impose any official rate rise on homebuyers, they stand accused of not passing on similar rate rises to account holders, and are as a result earning an additional $600million a month.
‘What do you say to the big banks who are whacking up interest rates on loans as quickly as possible, but not passing those increases in interest rates to savers,’ the Sunrise host asked Treasurer Jim Chalmers.
‘The average saving rate for the big four banks is a piddly 0.3 per cent for a bonus saver. The average is 1.25 percent. ING is paying 2.6 per cent. The banks are paying less than half that one of their competitors is doing.’
The treasurer admitted the banks’ actions were ‘disappointing’.
‘I feel like people who are relying on their savings, they’ve been the principal victims of interest rates at historic lows for some time now,’ he said.
‘There needs to be a silver lining in these interest rates going up and that’s for savers, people who need and deserve better interest rates.’
Mr Chalmers urged banks to give their account holder a ‘fair go’ but said ultimately the people can only withdraw their funds and bank with smaller competitors which are offering much better interest rates to woo new customers.
David Koch has called out Australia’s big four banks over the ‘piddly’ amount they are passing onto savers despite ‘whacking up interest rates’
‘I would encourage people if you are being let down by your bank to find a better deal if you can,’ he said.
Mr Chalmers said Tuesday’s expected rate hike will not be the last, as the Reserve Bank uses the monetary policy handbrake in an effort to slow escalating inflation.
‘It will get worse before it gets better, but it will get better,’ Mr Chalmers said.
Meanwhile there have been calls for RBA boss Philip Lowe and his entire staff to resign over misleading promises that interest rates would not rise this year or next – luring borrowers into a false sense of security.
Westpac, CBA, NAB, and ANZ have been accused of not passing on the full benefits from rising interest rates to savers, and are in turn earning an additional $600million a month
Warren Hogan, managing director of EQ Economics and chief economic adviser to Judo Bank, accused the RBA Governor should stand aside for such a misleading statement.
However Mr Chalmers was, for the time being, standing by Mr Lowe.
Economists are tipping another 50 basis point hike to interest rates when the central bank board meets on Tuesday, which would take the cash rate to 1.85 per cent