Karl Stefanovic slams Australian Banking Association CEO on national television as Aussies are left reeling from interest rate hike
- Replies 7
Another month, another interest rate hike.
Recently it was announced that the Reserve Bank of Australia (RBA) increased the cash target rate by 25 basis points (0.25 per cent), marking the ninth straight month — January excluded — of increases since May 2022.
This brought the interest rate in Australia to its highest since 2012 at 3.35 per cent, putting even more financial strain on Aussie households amid a cost-of-living crisis.
The development understandably has a lot of Aussies concerned and upset as it signals tightening our belts even further (all together now: sigh) due to the consequences of higher interest rates.
This means paying off mortgages, loans, and credit cards is going to become significantly more expensive, while saving money — though technically more attractive — has become next to impossible.
And it seems Karl Stefanovic is just as frustrated and fed up with the country’s banking system, after 'grilling' an industry official on a live broadcast.
Speaking with Australian Banking Association CEO Anna Bligh on the Today show, Stefanovic asked if banks were tweaking the reduction and increases they were passing on specifically to make more profit.
‘So the banks aren’t in any way, shape, or form, expanding profits by manipulating the pace of reductions and rises?’ he told Bligh.
‘No, banks of course make a profit and those profits —’ Bligh began, but Stefanovic cut in for a clarification.
‘Is that a “No, they aren’t expanding profits” or is that a “Yes, they are expanding profits”?’
Bligh pointed out that Australia’s banks have yet to announce their earnings reports, but Stefanovic wasn’t walking away without an answer.
‘Let’s take a guess,’ he said. ‘Hundreds of billions.’
‘Well they will make a healthy profit, and that’s a good thing for the country,’ Bligh admitted.
‘Their profits are going into your superannuation fund and the superannuation funds of hundreds of thousands of Australians.’
‘I don’t think Australia wants an economy with failing banks.’
‘Forgive me for not celebrating,’ Stefanovic responded.
In the same interview, Bligh also addressed criticisms that banks were holding back on raising interest rates on savings accounts while mortgage rates saw instant hikes.
The Daily Mail reported that ANZ, the first bank to announce the .25 per cent increase on its variable mortgage rates, only reflected the same change on ANZ Plus Save and not its other offerings like Progress Saver and Online Saver.
Bligh said that all major banks had a 4 per cent rate on term deposits but also that this figure varied between their savings account offerings.
‘Comparing the same product from this time last year to this year, I would tell you that self-funded retirees and people who are funding their lives from those savings are getting a much better deal after 10 very lean years where they were doing it tough while mortgage holders were getting very, very cheap money,' she said, urging Aussies to explore their banking options.
'I do want people to understand. Talk to your bank if you're in trouble.'
Earlier this week, Stefanovic slammed ‘greedy’ banks for their alleged haste in applying higher interest rates, highlighting how the same banks ‘seldom passed… on’ rate cuts at the height of the COVID pandemic.
‘Now they‘re like greedy moths to the flame, eating away at your savings, eating into your standard of living, eating into your future,’ he stressed.
‘They should be ashamed of themselves.'
Karl’s sentiments struck a chord with some SDC members who shared their thoughts on the matter.
Some recognised the latest change in monetary policy as a bitter but necessary pill to swallow.
Member @Flash Harry 22 said: ‘I know it can be very tough for a lot of families but unfortunately interest rate increases (and decreases when possible) are a fact of life and are required for the financial stability of the country.’
But others couldn’t help but feel for those already on the edge.
‘It seems very advantageous for the banks at the expense of the vulnerable,’ member @Citizen said. ‘Banks don't seem to be held accountable for their actions. They grant loans based on a borrower's income and then raise the repayments. The borrower has no recourse while the banks profit from distress they cause.’
They added: ‘It might be the only way to pull in inflation but should it be at the cost of making a choice between eating or which bill to pay for those unable to absorb the increases?’
Something to think about, eh?
In the meantime as cost-of-living pressures continue to strain all of us, here are some stories you might find interesting:
Tell us your thoughts below!
Source: YouTube/The Economist
Recently it was announced that the Reserve Bank of Australia (RBA) increased the cash target rate by 25 basis points (0.25 per cent), marking the ninth straight month — January excluded — of increases since May 2022.
This brought the interest rate in Australia to its highest since 2012 at 3.35 per cent, putting even more financial strain on Aussie households amid a cost-of-living crisis.
The development understandably has a lot of Aussies concerned and upset as it signals tightening our belts even further (all together now: sigh) due to the consequences of higher interest rates.
This means paying off mortgages, loans, and credit cards is going to become significantly more expensive, while saving money — though technically more attractive — has become next to impossible.
Karl Stefanovic showed no let up in his ire against Australia’s banks in the Today show’s February 9 episode. Image Credit: YouTube/Test5
And it seems Karl Stefanovic is just as frustrated and fed up with the country’s banking system, after 'grilling' an industry official on a live broadcast.
Speaking with Australian Banking Association CEO Anna Bligh on the Today show, Stefanovic asked if banks were tweaking the reduction and increases they were passing on specifically to make more profit.
‘So the banks aren’t in any way, shape, or form, expanding profits by manipulating the pace of reductions and rises?’ he told Bligh.
‘No, banks of course make a profit and those profits —’ Bligh began, but Stefanovic cut in for a clarification.
‘Is that a “No, they aren’t expanding profits” or is that a “Yes, they are expanding profits”?’
Bligh pointed out that Australia’s banks have yet to announce their earnings reports, but Stefanovic wasn’t walking away without an answer.
‘Let’s take a guess,’ he said. ‘Hundreds of billions.’
‘Well they will make a healthy profit, and that’s a good thing for the country,’ Bligh admitted.
‘Their profits are going into your superannuation fund and the superannuation funds of hundreds of thousands of Australians.’
‘I don’t think Australia wants an economy with failing banks.’
‘Forgive me for not celebrating,’ Stefanovic responded.
The RBA’s recent monetary policy change saw 0.25 basis points added to the cash target rate of 3.35 per cent. Image Credit: RBA
In the same interview, Bligh also addressed criticisms that banks were holding back on raising interest rates on savings accounts while mortgage rates saw instant hikes.
The Daily Mail reported that ANZ, the first bank to announce the .25 per cent increase on its variable mortgage rates, only reflected the same change on ANZ Plus Save and not its other offerings like Progress Saver and Online Saver.
Interest rate hikes are commonly used by governments to temper inflation through reducing cash flow and consumer demand. Image Credit: Seniors Discount Club
Bligh said that all major banks had a 4 per cent rate on term deposits but also that this figure varied between their savings account offerings.
‘Comparing the same product from this time last year to this year, I would tell you that self-funded retirees and people who are funding their lives from those savings are getting a much better deal after 10 very lean years where they were doing it tough while mortgage holders were getting very, very cheap money,' she said, urging Aussies to explore their banking options.
'I do want people to understand. Talk to your bank if you're in trouble.'
Earlier this week, Stefanovic slammed ‘greedy’ banks for their alleged haste in applying higher interest rates, highlighting how the same banks ‘seldom passed… on’ rate cuts at the height of the COVID pandemic.
‘Now they‘re like greedy moths to the flame, eating away at your savings, eating into your standard of living, eating into your future,’ he stressed.
‘They should be ashamed of themselves.'
Karl’s sentiments struck a chord with some SDC members who shared their thoughts on the matter.
Some recognised the latest change in monetary policy as a bitter but necessary pill to swallow.
Member @Flash Harry 22 said: ‘I know it can be very tough for a lot of families but unfortunately interest rate increases (and decreases when possible) are a fact of life and are required for the financial stability of the country.’
‘It seems very advantageous for the banks at the expense of the vulnerable,’ member @Citizen said. ‘Banks don't seem to be held accountable for their actions. They grant loans based on a borrower's income and then raise the repayments. The borrower has no recourse while the banks profit from distress they cause.’
They added: ‘It might be the only way to pull in inflation but should it be at the cost of making a choice between eating or which bill to pay for those unable to absorb the increases?’
Something to think about, eh?
In the meantime as cost-of-living pressures continue to strain all of us, here are some stories you might find interesting:
- Unit Pricing 101: How to Shop Smarter for Groceries
- Do budget supermarkets even exist anymore? Expert compares Woolies, ALDI prices
- Is your budget too tight? These simple tips will help you loosen your purse strings
Tell us your thoughts below!
Source: YouTube/The Economist
.png){kind=icon}
