Banks pledge 'no more greedy rates'

THE big four banks agree to keep interest rates steady until the RBA raises the official interest rate.

THE big banks have given unprecedented undertakings that should stop them raising rates beyond official increases.

There is increasing speculation the Reserve Bank will lift its benchmark cash rate before Christmas.

In recent times, the banks have been willing to raise rates even without moves in the central bank's position, but banks pledged this week not to do this in the near future.

The new rate commitments from ANZ, NAB, Westpac and St George follow Commonwealth Bank chief executive Ralph Norris saying earlier this week he would be surprised if any bank raised rates beyond official increases.

The ANZ stated: "Funding costs are still high but there is no pressing need to review the standard variable rate out of cycle at present and we have no plans to do so."

Decoded, that means "we will do what the RBA does", an ANZ spokeswoman said.

An NAB spokeswoman said it would match that position.

A spokesman for Westpac, which also owns BankSA, said it "has no plans to move its standard variable rate outside any RBA changes".

St George chief executive Greg Bartlett said the bank "does not have plans to shift our standard variable rate outside RBA changes", while BankSA general manager Chris Ward said: "We have no plans to move our standard variable rate outside of RBA changes."

Research shows banks face mounting dissatisfaction among home-loan customers. Consumer group Choice has found more mortgagees are unhappy with the Big Five than four years ago.

In 2005, 79 per cent of St George customers were satisfied with their home loan. Now it's only 66 per cent - a drop of 13 percentage points.

And St George's new owner, Westpac, has an 11 per cent decline from 70 per cent to 59 per cent.

ANZ has shed 6 points to 63 per cent; NAB has lost 3 percentage points to 57 per cent while CBA is down 1 per cent to 61 per cent.

The interest rate futures market has a 0.25 percentage-point rate rise next month priced as a 100 per cent certainty. A week ago it was a 60 per cent chance.

That market also indicates the dose will be repeated in December, February and March.

Investors are anticipating a full 2 percentage points of increases by November next year, adding nearly $400 a month to repayments on a $300,000 home loan and more than $660 a month for a $500,000 mortgage. -

The Daily Telegraph 3 Oct 2009

What a joke this story is, at the expense of the public's intelligence.

Banks ARE greedy, that's how HUGE profits are made (naturally for the shareholders and the CEO's HIGH pay packets), AND they obtain profits FRAUDULENTLY.

SOME GET 'CAUGHT' MOST DO NOT.