The Reserve Bank has kept the cash rate on hold at its historic low of 1.5% for the 6th month
Ross Greenwood: Official rates will stay where they are until the middle of next year.
They also say the next movies up, probably in June or July next year, but not all experts agree.
Adam Boyton: While ever wages growth is running at a record low level while ever inflation is below the bank’s target, it’s very hard to see the RBA putting interest rates up – not just this year but next year as well.
Ross: The banks, meantime, will move rates up and down, according to their own books.
Erin Turner: Up until 2011, those interest rates were intimately linked.
They only stopped adjusting those interest rates as the cash rate dropped.
Ross: Despite some credit card rates coming down, Westpac says it’s working on a low rate card below ten percent.
Consumer group, Choice, says the card industry remains a $3 billion rip-off.
Erin: Thanks for gauging customers every day.
Ross: That report dropped as bosses from the Commonwealth Bank and ANZ fronted a hostile parliamentary inquiry.
Scott Buchholz: Are you signalling to your hands to your CBA clients that the bank has no appetite to reduce credit card interest rate?
Ian Narev: We have no strategy to always be the cheapest in the market.
Ross: Apart from low rate credit cards, other changes could come from this inquiry.
Bank executive’s responsible for breaches could be publicly named, and banks may be prevented from foreclosing on small business and pharma loans under $3 million if the customer is keeping up with repayments
Shayne Elliot: We can implement that fine. We can implement and not do it.
Ross: But there’s one change the banks are adamant about.
Matt Thistlethwaite: Wouldn’t you just be better off agreeing to one single Royal Commission and get this all over and done with?
Ian Narev: I think the message, that the convening of a Royal Commission would send, would not be positive for the industry
Ross: Ross Greenwood; Nine News
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