Australian banks are making more money from mortgage lending than at any time on record after refusing to pass on rate cuts to consumers, according to UBS research cited by The Australian.
“Given the challenging political environment, with a federal election due in mid-September, we believe that pressure will likely build on the banks to begin reducing mortgage standard variable rates,” said Mr Mott. “If the banks do not follow suit, then the risk of political interference in the sector is large. This has already been seen in many other sectors of the economy which were perceived to be over-earning.”
The story focuses more on banks cutting rates independently and political pressure but the RBA will have banking conditions in mind at the next meeting.