Not only do banks raise rates as soon as the RBA makes its announcements, should the rates drop the opposite will happen; loans will remain for a time, investors rates will drop immediately. This is business as usual for any non-regulated industry. When the banks were deregulated in the ’80’s a number of things happened, overseas banks were allowed to enter Australia and the RBA’s rates were no longer compulsory but are a guide. Not only are the profits obscene (unless you hold shares) but banks have become arbiters of climate change and not making funds available to those industries that they believe are causing climate change.
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