The AFR reported today that NAB lifts home loan rates by up to 16bps.
Consistent with the usual performance theatre around home loan interest rate increases, Shadow Treasurer Chris Bowen said:
Australians will be very cynical at NAB making this move, not only because it is out of step with the [Reserve Bank of Australia], but it comes just a week out from the delivery of the banking royal commission final report to the government,
Fascinating this out of step with the RBA line that is wheeled out every time. Not particularly relevant given that half or more of the wholesale funds the Australian banks get is not domestic and not related to RBA prices, but hey, performance theatre is performance theatre. After all there are many, particularly in the opposition, who believe that prices are completely unrelated to the cost of inputs, especially the costs of energy, labour and taxes. These people believe that increases electricity costs, labour costs and tax rates should have no impact whatsoever on prices.
But here is a more interesting question. If the government and opposition get all huffy puffy about interest rates on loans going up, why don’t they get equally huffy puffy when the interest rates on deposits go down? As they have recently to fund the increased cost of compliance and bank taxes.
Interesting world this is …. borrowers are sacred and savers are scum.