- CNTV English - CCTV News

Homepage > News > Biz >

Australian Treasurer warns banks against raising rates

10-04-2010 11:36 BJT

CANBERRA, Oct. 4 (Xinhua) -- Australian Federal Treasurer Wayne Swan on Monday warned banks that there will not be justification for them to lift rates above the official cash rate, even if the Reserve Bank of Australia (RBA) increases its rates when it meets on Tuesday.

Australian Federal Treasurer Wayne Swan (2nd L) sings Australian national anthem
with ministers during the official swearing-in ceremony at Government House in
Canberra, Australia, Sept. 14, 2010. (Xinhua File Photo)

On Sept. 21, the RBA kept its benchmark cash rate on hold at 4.5 percent since the most recent increase in May.

But economists are predicting a 25 basis point rise when the central bank meets on Tuesday.

According to The Australian newspaper, banks may try to protect their profit margins from wholesale funding costs by announcing additional rises on variable mortgage rates of up to 15 basis points.

Swan said there were issues on the long-term funding profile of banks, but it still did not justify hitting customers with higher interest rates than those of the RBA.

"I don't think there is any justification whatsoever for any bank to move above the official cash rate decision of the Reserve Bank," Swan told ABC Radio on Monday.

"Banks are making healthy profits at the moment, their net interest margins are back above what they were before the global financial crisis."

The RBA has been raising rates for six times since October last year, when cash was at a multi-decade low of 3.0 percent, to May this year.

HSBC's chief economist Paul Bloxham expected that if the central bank does not raise official interest rates at its meeting on Tuesday, it is likely to do so before the end of the year.

Editor:Zhang Jingya |Source: Xinhua

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program