RBA cash rate increase
CHOICE calls on banks to hold mortgage rates
The people's watchdog CHOICE says that today's announcement by The RBA to raise the cash rate to 4.75 per cent, should not be an automatic green light for banks to increase mortgage rates.
Spokesperson for CHOICE, Christopher Zinn says given the banks claim a majority of their funds come from deposits or overseas, the current low cost of these is likely to outweigh the small increase the RBA has announced today.
"We would be naturally concerned if all the banks increased their mortgage rates by the same amount at the same time. If the equivalent happened in a horse race then there would be a steward's inquiry," says Zinn.
"This is a chance for banks to show they can be on the side of their customers as well as their shareholders."